Wedbush Reiterates Outperform on Itron Following Company Restructuring Announcement

In a report published Thursday, Wedbush analyst Craig Irwin reiterated an Outperform rating and $45.00 price target on

. In the report, Wedbush noted, “Itron announced this morning that it plans to cut 750 employees, 9% of the total workforce. The company estimated that a pre-tax restructuring charge of $30-35m (95% cash expense) will be incurred in 3Q13 and the restructuring could result in $30m annualized cost saving. It is expected that 60% of the restructuring will be completed by the end of 2013 and the rest completed by June 2014. We maintain our estimates at this time. We maintain our OUTPERFORM rating and $45 price target. Our target uses a 12x multiple on 2014E EPS, which is at the low end of the historical 12x-27x trading range and a discount to trading peers. The lower multiple reflects the generally challenging end-market environment and low near-term visibility.” Itron closed on Wednesday at $39.34.