Canaccord Genuity maintained its Buy rating on Itron (NASDAQ:ITRI) with a price target of $125.00. The firm's endorsement follows the recent Itron Inspire customer conference in Palm Desert, California, where the company emphasized the integration of artificial intelligence (AI) and machine learning (ML) to enhance grid resilience, especially in response to extreme weather conditions.
At the conference, Itron shared insights from a survey conducted with its utility customers. A significant 86% of those surveyed deemed the integration of AI/ML into their infrastructure as extremely or very important. The survey also revealed that 43% of utility customers consider the detection and control of potentially dangerous situations as the most crucial application of AI/ML in grid management.
The focus on AI/ML was also evident in the responses regarding edge computing. According to the survey, 36% of the respondents highlighted real-time anomaly detection, such as identifying downed power lines or overloaded transformers, as a key benefit of using AI/ML at the edge. Additionally, 33% of the participants pointed out that AI/ML could lead to efficiency improvements within the distribution system.
Itron's commitment to incorporating advanced technologies like AI and ML into its offerings is clear from the discussions and findings at the Inspire conference. The company's initiative to survey its customers underscores its intent to align its solutions with the needs and priorities of the utilities industry.
The maintained price target by Canaccord Genuity reflects the firm's confidence in Itron's strategic direction and its potential to capitalize on the growing demand for AI/ML applications in grid management and infrastructure resilience.
In other recent news, Itron Inc. has reported a 13% increase in revenue for its second quarter, marking record earnings in its Network Solutions and Outcomes segments. The company's backlog remains substantial at $4.1 billion, with bookings for the quarter totaling $447 million.
TD Cowen reaffirmed a Buy rating for Itron shares, with the price target remaining unchanged at $125.00. This endorsement followed the firm's attendance at the Itron Inspire conference, where it gained a clearer understanding of Itron's new software features and its strong market position.
In other recent developments, Itron's Board of Directors approved a new share repurchase program, authorizing the buyback of up to $100 million of Itron's common stock over an 18-month period. The company also announced the appointment of David M. Wright as Vice President, Corporate Controller & Chief Accounting Officer. Itron's Grid Edge Intelligence platform was highlighted as a key technology for providing visibility and control at the edge of the grid, with partnerships with GE, Vernova, and Schneider aiding in technology adaptation.
InvestingPro Insights
Itron's focus on integrating AI and machine learning into its grid management solutions aligns well with its strong market position and financial performance. According to InvestingPro data, Itron has shown impressive growth with a revenue increase of 22.16% over the last twelve months as of Q2 2024, reaching $2.35 billion. This growth is complemented by a robust EBITDA growth of 109.67% over the same period, indicating the company's ability to improve operational efficiency.
InvestingPro Tips highlight that Itron is trading near its 52-week high, which supports Canaccord Genuity's bullish stance. The company's high return over the last year, with a one-year price total return of 84.36%, demonstrates strong investor confidence in Itron's strategic direction.
Furthermore, Itron's focus on AI and ML applications for grid resilience is likely to contribute to its future profitability. An InvestingPro Tip notes that analysts predict the company will be profitable this year, which is crucial for sustaining its growth initiatives in advanced technologies.
For investors seeking more comprehensive insights, InvestingPro offers 5 additional tips that could provide a deeper understanding of Itron's market position and potential.
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