Badger Meter: A Good Long-Term Buy At Reasonable Valuation (Rating Upgrade)

GS Analytics3.26K FollowersFollow5ShareSavePlay(11min)Comment(1)SummaryBadger Meter, Inc. is rated Buy as its P/E has compressed to the high 20s, offering an attractive entry point for a high-quality, defensive business.BMI benefits from ~85% replacement demand, secular AMI adoption trends, and robust software/services growth, underpinning long-term revenue and margin expansion.Growth is expected to accelerate in H2 '26 as the Puerto Rico project ramps up, offsetting near-term softness from completed projects in H2 '25.SmartCover acquisition and the BEACON analytics platform drive higher-margin, recurring revenues, supporting both top-line and margin mix improvements. ARISA THEPBANCHORNCHAI/iStock via Getty Images I last covered Badger Meter, Inc. (BMI) in 2022. While I liked the company’s growth prospects, I rated it a Hold at that time, as its P/E valuation in the 40s looked too high. However, its multipleThis article was written byGS Analytics3.26K FollowersFollowWe focus on GARP (Growth at reasonable Price) opportunities in industrial, consumer, and technology sectors. We are among the top 50 financial experts (Out of ~39,000 tracked) as measured by Tipranks based on the consistency of our stock recommendations and returns generated https://www.tipranks.com/experts/bloggers/gs-analytics. Please click the "Follow" button to receive our latest research. If you have any questions, feel free to reach out to us through the comments section of our articles or SA messaging functionality.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. This article is written by Gayatri S.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.