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Canaccord Lifts Itron Price Target After Meeting With Management

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Itron, Inc. (NASDAQ: ITRI) shares have been on quite a run so far in 2016, but Canaccord believes the stock still has plenty of room to the upside. According to analyst John Quealy, Itron offers investors a favorable risk/reward balance.

Now that project outlook has become clearer and the company’s cost-cutting efforts are starting to make an impact, Canaccord has upped its price target for the Buy-rated stock from $57 to $61.

After meeting with company management, Quealy is bullish on both core metering growth trends and the company’s long-term growth vision.

“In our view, the steady improvement in segment margins is the trend to watch in the coming quarters, given the inherently lumpy cadence of product deployments, as a scorecard on management execution,” Quealy explains.

Related Link: Itron Announces Solid Q2 Results, Plans To Become Leaner

He believes management’s priorities remain predictability, profitability and growth. Quealy notes that roughly 60 percent of Itron’s business now has a “solid visibility.” He expects the company will continue to focus on driving growth in its high-margin software/managed services segments.

“For Riva in particular (still nascent) we note ample potential to broaden the footprint served (given edge computing/sensing analytics and multi-protocol – RF, PLC, Cellular, Wi-Fi – along with notable software-type upsell activity, think $2-3/pm aspirations),” Quealy adds.

Canaccord’s new price target represents nearly 10 percent upside from Itron’s current share price.

Latest Ratings for ITRI

DateFirmActionFromTo
Jan 2021Raymond JamesDowngradesStrong BuyOutperform
Sep 2020Raymond JamesUpgradesOutperformStrong Buy
Aug 2020Raymond JamesMaintainsOutperform

View More Analyst Ratings for ITRI
View the Latest Analyst Ratings

 

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