Positive Outlook for Itron Amid Grid Modernization and Regulatory Challenges

Analyst Jeff Osborne from TD Cowen maintained a Buy rating on Itron and keeping the price target at $145.00.

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Jeff Osborne’s rating is based on a combination of factors that suggest a positive outlook for Itron’s future performance. Despite recent challenges with regulatory approvals leading to a temporary dip in bookings, Osborne anticipates a rebound in 2026 as these issues are expected to be short-lived. The current valuation of Itron is seen as a baseline, especially in light of comparable transactions in the industry.
Osborne highlights the ongoing modernization of utility grids as a significant driver for Itron’s growth. The convergence of technological advancements, increased load demands, and evolving regulatory requirements is expected to accelerate grid upgrades, benefiting Itron. The potential for increased revenue from high-margin recurring software applications per endpoint is underappreciated, according to Osborne, and presents a compelling investment case. Additionally, Osborne points to specific regions where grid modernization is advancing, despite setbacks in other areas, further supporting his optimistic outlook.

In another report released yesterday, Seaport Global also maintained a Buy rating on the stock with a $138.00 price target.