Baird raised its rating on Itron (NASDAQ:ITRI) to Outperform from Neutral and increased its price target to $128 from $118. The company’s shares are trading at $96.43, which implies roughly a 33% upside relative to Baird’s revised target. Other analysts’ price targets for Itron span from $125 to $150.
The upgrade follows Itron’s fourth-quarter report, in which the company highlighted what Baird described as a multi-year opportunity driven by Itron’s positioning in utility grid modernization efforts. Baird cited the potential for sustained demand tied to infrastructure upgrades as a central factor behind its more favorable view.
Financial metrics cited in market data underline Itron’s valuation profile: a price-to-earnings ratio of 13.75 and a free cash flow yield of 9%. Those figures are reflected by market-data providers and were mentioned in the context of Itron’s growth prospects.
At the same time, Baird tempered expectations about the near-term pace of order intake. The firm acknowledged that conversion of pipeline into firm orders and the resulting backlog may not return to historical conversion rates and that the cadence of large order conversions could differ from past patterns. In light of that, Baird said it is updating its estimates and views book-and-ship activity as an interim business opportunity.
On the company’s quarter, Itron reported fourth-quarter 2025 earnings that exceeded consensus forecasts. Reported earnings per share were $2.46, compared with the projected $2.19, representing a 12.33% surprise. Revenue for the quarter came in at $572 million versus the anticipated $561.48 million. Those results were noted as stronger than analysts had expected and were cited as part of the rationale for renewed investor interest.
Overall, Baird’s commentary frames Itron as a company with a potential multi-year addressable opportunity tied to grid infrastructure investment, while also flagging execution-related uncertainties as pipeline-to-order conversion and backlog dynamics evolve.
Summary
Baird upgraded Itron to Outperform and raised its price target to $128 after the company reported better-than-expected fourth-quarter results and emphasized its role in utility grid modernization. The firm warned that pipeline conversion may not revert to historical patterns and described near-term book-and-ship work as an interim opportunity.