Why Badger Meter Stock Is Plunging Today

By Scott Levine | January 07, 2026, 12:30 PM

Key Points

  • A Barclays analyst initiated coverage on Badger Meter stock.

  • The analyst projects that the company will recognize declining growth

  • Badger Meter is in good financial health with no debt and strong free cash flow.

After rising higher on each of the previous three days of trading, shares of Badger Meter (NYSE: BMI), a leading provider of water meters, are heading in the other direction today. An analyst's pessimistic outlook for Badger Meter stock is motivating the bears to click the sell button.

As of 11:58 a.m. ET, shares of Badger Meter are down 8.2%.

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upset investor looks at smartphone.

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The stock's price tag has one analyst concerned

Investors learned today that William Grippin, an analyst at Barclays, initiated coverage on Badger Meter stock, assigning an underweight rating and a $157 price target.

According to thefly.com, Grippin characterized Badger as a "solid company with a difficult setup." Believing that the stock is trading at a premium valuation, Grippin foresees the company encountering decreasing growth due to strained utility market conditions.

Based on Badger Meter's shares closing at $181.83 yesterday, Grippin's $157 price target implies a downside of more than 13%.

How does Badger Meter stock measure up as a potential buy?

Trading at 38.8 times trailing earnings, shares of Badger Meter certainly aren't sitting in the bargain bin -- though they are priced at a discount to their five-year average P/E of 49.8. Between this and the facts that the company has no debt and consistently generates free cash flow, investors seeking a conservative stock pick should certainly be open to investigating the stock further -- not simply dismissing it due to one analyst's bearish opinion.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.

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