UPDATE: Credit Suisse Reiterates Neutral Rating, Lowers PT on Itron Following Disappointing 2014 Guidance

In a report published Thursday, Credit Suisse analyst Patrick Jobin reiterated a Neutral rating on Itron ITRI, but lowered the price target from $45.00 to $38.00. In the report, Credit Suisse noted, “Itron reported a 5% miss, delivering a ‘clean' non-GAAP EPS of $0.72 (excl. $0.36 tax charge) in Q4 vs. cons of $0.76 but in-line with our estimate of $0.72 and in-line with prior comments of the low end of the prior guidance range of $2.25-$2.55 for the year. We lower our 2014/2015 estimates to $1.66/$2.34 (from $2.66/$3.54) to reflect the continued pressures. We retain our Neutral rating and lower our Target Price to $38 (from $45) reflecting 23x 2014 EPS. We are encouraged, however, by management's recent acknowledgement of the need to rethink the way they approach parts of their business.” Itron closed on Wednesday at $41.43.