Group 1 - Badger Meter, Inc. (NYSE:BMI) is recognized as one of the 7 Best Low-Risk Dividend Stocks to Invest in [1] - Seaport Research analyst Scott Graham reduced Badger Meter's price target from $255 to $220 while maintaining a Buy rating, citing slower sales growth in the first half of the year but improved visibility for a second-half pickup [2][3] - The company reported strong momentum in Q4 2025, achieving record sales, profits, and cash generation, with healthy demand for its cellular AMI offering and successful integration of SmartCover into the BlueEdge platform [4] Group 2 - Fourth-quarter sales for Badger Meter reached $221 million, an 8% increase from the previous year, with base sales rising 2% [5] - Operating margins improved to 19.5% from 19.1%, and base operating earnings increased by 9% year-over-year, resulting in base operating margins of 20.5% [5] - Gross margins also saw an increase, climbing to 42.1% from 40.3% in the same quarter last year [5]

Core Viewpoint - Badger Meter, Inc. is recognized as a solid company in the smart-water technology market, but faces challenges due to its premium valuation and expected growth slowdown as the market matures [2][3]. Group 1: Company Overview - Badger Meter, Inc. (NYSE:BMI) is a manufacturer and marketer of flow measurement, water quality, and control solutions, serving customers globally [4]. - The company is an early leader in North America's smart-water tech market, with approximately 40% of its connection points migrated to its Advanced Metering Infrastructure (AMI) platform [3]. Group 2: Growth Opportunities - Badger Meter anticipates increased adoption of its AMI platform as customers replace outdated equipment and new features, such as real-time water quality and pressure monitoring, enhance the value of upgrades [3]. - The company is targeting growth through flow instrumentation opportunities in industrial and smart-building applications, as well as expanding into international markets like Europe and the Middle East [3]. Group 3: Acquisitions - Acquisitions are a key growth driver for Badger Meter, exemplified by its $185 million acquisition of SmartCover in early 2025, which enhances its wastewater monitoring capabilities and creates cross-selling opportunities [4].

Company Overview - Badger Meter, Inc. (NYSE:BMI) specializes in flow measurement, water quality, and control products, serving water utilities and other commercial customers [4] Financial Performance - On November 7, Badger Meter declared a quarterly dividend of $0.40 per share, consistent with its previous dividend, and has been returning value to shareholders through growing dividends for 33 consecutive years [3] - The Board approved a new share repurchase authorization for up to $75 million of the company's outstanding common stock through November 2028, allowing for share purchases in the open market [3] Analyst Insights - On December 8, JPMorgan lowered the price target for Badger Meter to $235 from $240 while maintaining an Overweight rating, as part of its 2026 outlook on the clean energy market [2] - JPMorgan expects strong performance for utility-scale projects in the renewables space but notes a market shift towards larger, more complex projects and tougher regulations, which may lead to consolidation [2] - Analysts prefer companies with US manufacturing, diverse customers, and solid balance sheets in the current market environment [2] Investment Considerations - Badger Meter is included among the 15 Best Stocks to Buy for the Long Term, indicating positive long-term investment sentiment [1]