Deutsche Bank Maintains Hold, $38 Target on Itron

Deutsche Bank reiterates its Hold rating and $38 target price on Itron ITRI following expected upside to the fourth quarter and a guidance given in line with estimates. Deutsche Bank says, "Itron reported a strong 4Q of $643M/$1.19, cons. of $587M/$1.00, vs DBe $627M/$1.05, inline with our est (driven by high shipments into BC Hydro and strength in Int'l). Itron provided wide guidance range of $2.1-2.3bn and $3.80-4.20 although FX appears to already be a revenue headwind. While revenue guidance appears reasonable, the margin impact from a shift of more revenue to the less profitable Int'l segment remains to be seen despite operational improvements from the restructuring." ITRI closed at $40.80 yesterday.