Tuesday, Baird upgraded shares of Itron (NASDAQ:ITRI) from Neutral to Outperform, significantly raising the price target to $108 from the previous $68.
This adjustment follows Itron's announcement of robust fourth-quarter and full-year 2023 financial results, which surpassed both Baird's and Wall Street's expectations. The company's performance was attributed to better component availability and a beneficial product mix that led to improved year-over-year margins.
The firm noted that Itron's recent strategic partnerships, particularly in the Networks and Outcomes segments, are poised to bolster margin growth over the long term. These collaborations are expected to be increasingly valuable as utility companies continue to integrate AI-enabled data management solutions into their operations.
Baird's positive outlook on Itron is also based on the potential for margin expansion beyond 2025. The details of this forecast are anticipated to be further elaborated during Itron's Investor Day, scheduled for March 12. The firm views Itron as a compelling investment within their coverage to capitalize on the integration of AI technology.
Itron's recent financial achievements and strategic initiatives indicate the company's strong position in the market. With the anticipated detailed outline of future margin growth strategies at the upcoming Investor Day, investors and stakeholders have a significant date to look forward to for deeper insights into the company's trajectory.
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