Badger Meter (BMI) Shares Drop After Q4 Earnings, RBC Calls Market Reaction "Overdone"

Badger Meter, Inc. (NYSE:BMI) ranks among the best sustainability stocks to invest in. On January 29, RBC Capital reduced its price target for Badger Meter, Inc. (NYSE:BMI) to $191 from $229, while retaining an Outperform rating. The downward revision followed Badger Meter’s fourth-quarter 2025 results, which showed a minor operating beat driven by higher gross margins, while its organic growth of about 2% fell short of RBC’s 7% target.

The company’s earnings per share for the quarter stood at $1.14, lower than projected. Meanwhile, revenue for the quarter came in at $220.7 million, less than the expected $231.98 million.

According to RBC, the share decrease following the earnings announcement was driven by market concerns about management’s estimate for a second-half-weighted 2026 based on the AMI project schedule.

RBC stressed that Badger Meter, Inc. (NYSE:BMI) still anticipates strong growth in 2026 despite the timing problems, calling the market’s response “overdone” and offering “an attractive entry point” for investors.

Badger Meter, Inc. (NYSE:BMI) is an American company that specializes in flow measurement, water quality, and control products, serving water utilities and other commercial customers.

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Disclosure: None. This article is originally published at Insider Monkey.