A Look at Itron (ITRI) Valuation Following $250 Million Share Buyback Announcement

Itron (ITRI) just launched a new share repurchase program, authorizing up to $250 million in buybacks over the next 18 months. Buyback plans like this often signal management’s confidence in future growth and can catch investors’ attention.

See our latest analysis for Itron.

Itron’s $250 million buyback announcement comes after a volatile stretch, with the share price recently closing at $103.44. Despite softer quarterly earnings and cautious guidance, the 3-year total shareholder return is an impressive 90%. However, the short-term price return has been under pressure and momentum has cooled this year.

If recent buyback news has you thinking about where momentum or insider confidence could strike next, now is a timely moment to explore fast growing stocks with high insider ownership.

With shares trading well below analyst targets and fundamentals still showing growth, the question remains: is Itron now undervalued after a tough year, or is the market already accounting for its future potential?

Most Popular Narrative: 26.3% Undervalued

With Itron closing at $103.44 and the most followed narrative assigning a fair value above $140, there is a noticeable gap between market price and potential. This divergence sets the scene for some compelling assumptions driving the current estimate.

Ongoing industry-wide digitalization and increased adoption of IoT by utilities are driving higher uptake of Itron's Outcomes (software and analytics) offerings, which are higher margin and boost recurring revenue, supporting continued net margin and earnings expansion.

Read the complete narrative.

What is the secret recipe behind this bold narrative? The math relies on a forecast of accelerating margins, ambitious recurring revenue targets, and a multiple that puts Itron in the company of growth sector leaders. Ready to see the full set of expectations steering this fair value call?

Result: Fair Value of $140.40 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing regulatory approvals or delays in utility project rollouts could challenge Itron’s path to sustained growth and test confidence in the positive outlook.

Find out about the key risks to this Itron narrative.

Build Your Own Itron Narrative

If you see the story differently, or want to dive into the numbers on your own terms, you can build a personal narrative in just a few minutes. Do it your way.

A great starting point for your Itron research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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