Badger Meter’s (BMI) Smart Water Play Impresses, But Stifel Remains on Hold

Badger Meter Inc. (NYSE:BMI) is one of the 10 best sustainability stocks to buy now. Nearly 95% of Badger Meter’s revenue comes from technologies designed to safeguard water, a resource growing scarcer by the day. The company builds intelligent metering systems that help cities, utilities, and industries monitor consumption.

Badger Meter’s technology suite includes the ORION Cellular endpoints, BlueEdge suite, and the BEACON analytics platform, which provide utilities and businesses with real-time visibility into water usage. These tools make it easier to detect leaks, curb waste, and fine-tune system performance—helping operators respond quickly and manage water more efficiently.

Badger Meter's (BMI) Smart Water Play Impresses, But Stifel Remains on Hold

A plumber in a workshop, installing a water control and backflow device.

Badger Meter also brings its environmental values into the factory floor: nearly 98.5% of the bronze used in its meter housings comes from recycled materials. It’s a detail that reflects the company’s broader approach, that is not just innovating in water tech, but doing so with a commitment to responsible production.

The stock has risen by around 15% year-to-date and is up over 42% since touching its one-year low of $170.72 in early April. Analyst sentiment remains mixed on it. On June 16, Stifel Nicolaus analyst Nathan Jones reaffirmed his Hold rating on it, as he believed the stock was fairly valued at those levels. He met with the company’s CEO and CFO, and the discussions with them underpinned his outlook of continued growth and margin improvement. As a result, the analyst increased his price target to $230 from $200. However, he maintained his cautious view as he expects the potential upside to be limited.

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.

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Disclosure: None.