Barclays Initiates Badger Meter (BMI) Coverage, Citing Valuation and Growth Concerns

Badger Meter, Inc. (NYSE:BMI) is included among the 14 Best Mid-Cap Dividend Stocks to Buy Now.

On January 7, Barclays analyst William Grippin launched coverage of Badger Meter, Inc. (NYSE:BMI) with an Underweight rating and a $157 price target. In his view, Badger is a “solid company with a difficult setup.” He argued that the stock’s premium valuation compared with other water technology names makes the risk/reward less attractive. Barclays also expects growth to slow as the market matures and utility funding becomes more constrained.

Badger is an early leader in North America’s smart-water tech market, but only about 40% of its connection points have migrated to its AMI platform so far. The company expects adoption to rise as customers replace old equipment and as new platform features like real-time water quality and pressure monitoring increase the value of upgrading. Badger is also targeting growth through flow instrumentation opportunities in industrial and smart-building uses, while expanding internationally into regions like Europe and the Middle East.

In addition, acquisitions remain a key growth driver, highlighted by its $185 million purchase of SmartCover in early 2025, which strengthens Badger’s wastewater monitoring capabilities and creates new cross-selling opportunities across its customer base.

Badger Meter, Inc. (NYSE:BMI) manufactures and markets flow measurement, water quality, and control solutions, along with other system products that serve customers across global markets.

While we acknowledge the potential of BMI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Best Dividend Kings to Buy in 2026 and 15 Best High Yield Stocks To Buy.

Disclosure: None.