Itron (ITRI) has just stacked up a series of AI focused grid edge deals, ranging from wildfire mitigation with Toumetis in Southern California to expanded deployments with Pacific Gas and Electric Company and new resilience tools showcased at DTECH 2026.

Itron’s recent AI focused deals and grid edge launches come after a mixed share price run. The company has reported a 7.03% year to date share price return alongside a 1 year total shareholder return decline of 3.75%, while the 3 year total shareholder return of 72.84% points to stronger longer term momentum than the 5 year total shareholder return of 1.05%.

If you are tracking how grid and AI themes are playing out beyond Itron, it could be a good moment to widen your search and check out high growth tech and AI stocks.

With Itron trading at US$101.11 and screens flagging an estimated intrinsic discount of 47%, plus a sizeable gap to the average analyst price target, you have to ask: is this a genuine opportunity, or is the market already baking in future growth?

Most Popular Narrative: 28% Undervalued

With Itron’s fair value estimate at about $140.40 against a last close of $101.11, the most followed narrative sees a clear valuation gap built on long duration utility IoT cash flows.

Ongoing industry-wide digitalization and increased adoption of IoT by utilities are associated with higher uptake of Itron's Outcomes (software and analytics) offerings, which are higher margin and increase recurring revenue, and this is cited as supporting continued net margin and earnings expansion.

Curious what kind of revenue build, margin profile and earnings multiple are reflected in that fair value line? The projections lean on steady grid digitalization and a richer software mix that may surprise you.

Result: Fair Value of $140.40 (UNDERVALUED)

However, there are clear tripwires here, including slower utility capex decisions and weak orders, which could challenge the earnings and P/E assumptions behind that fair value.

Build Your Own Itron Narrative

If you see the numbers differently or prefer to piece together your own story from the data, you can build a fresh thesis in minutes, starting with 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.

Looking for more investment ideas?

If you are serious about building a stronger watchlist, do not stop at a single stock when the data can quickly point you to other focused opportunities.

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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.