Badger Meter: Turning the Corner; Maintain Overweight; PT $170

研报英文原文证据摘录

Badger Meter: Turning the Corner; Maintain Overweight; PT $170

J P M O R G A N North America Equity Research

22 July 2026

Badger Meter Overweight

BMI, BMI US

Turning the Corner; Maintain Overweight; PT $170 Price (22 Jul 26):$126.67

▼Price Target (Dec-27):$170.00

Prior (Dec-26):$172.00

BMI's 2Q26 results came in largely as expected, with revenue and EPS in line with

Street and gross margin holding in the upper half of the normalized range despite Clean Energy, Power Infrastructure,

and Sustainable Investingy/y revenue pressure. Sequential improvement in both the top line and operating

leverage was supported by initial AMI project deployments beginning to ramp. We Michael G Fairbanks AC

view the reaffirmation of flattish full-year organic revenue vs. 2025 as a positive, (1-212) 622-4908

michael.fairbanks@jpmchase.com

though we acknowledge some broader investor skepticism on that outlook, and the

electronic component cost and availability pressures management called out on the Mark Strouse, CFA

(1-212) 622-8244

call represent a watch item heading into 2H26. We are updating our model for the mark.w.strouse@jpmorgan.com

2Q results and establishing a YE27 price target of $170, from a prior YE26 price

Anna Zhu

target of $172. We see upside to our assigned EV/EBITDA multiple of 19x if the (1-212) 622-0012

company is able to exit FY26 and enter FY27 on a more normalized growth anna.zhu@jpmorgan.com

trajectory. BMI is our preferred pick within our water technology coverage. J.P. Morgan Securities LLC

Maintain Overweight.

Quarterly Forecasts (FYE Dec)

• Sequential recovery on track. 2Q results came in largely in line with Street Adj. EBITDA ($ mn)

on revenue and EPS, and modestly ahead of JPMe on the top line. Both 2025A 2026E 2027E

segments contributed to the beat vs.