Badger Meter (BMI) is back in focus after a securities class action lawsuit and related shareholder investigations raised questions about past revenue recognition and demand trends, prompting investors to reassess the stock’s recent performance and risk profile.

Over the past month Badger Meter’s share price has risen 13.99%, recovering some ground after a year to date share price decline of 17.30% and a 1 year total shareholder return that is down 39.24%. This suggests recent momentum is building from a weaker base as investors weigh the lawsuit headlines, prior revenue disclosures and the upcoming Q2 2026 earnings release.

If legal headlines around Badger Meter have you reassessing your watchlist, it could be a good time to widen your search using the Simply Wall St screener for 35 power grid technology and infrastructure stocks

So with Badger Meter’s share price still down sharply over the past year, yet trading only slightly below the current analyst price target and an intrinsic value estimate, is there real upside here or is the market already pricing in future growth?

Most Popular Narrative: 0.8% Undervalued

Badger Meter’s most followed narrative pegs fair value at $147.00, only slightly above the last close of $145.87. As a result, the focus shifts squarely to the assumptions behind that number.

The increasing emphasis on water conservation and sustainable infrastructure is driving elevated demand from utilities for advanced metering and monitoring solutions; Badger Meter's continued success with its BEACON SaaS platform, BlueEdge suite, and recent SmartCover acquisition positions the company to capture a larger share of this growing market, supporting high single-digit revenue growth targets over the long run.

Want to see how this growth story translates into $147.00 fair value, a nearly 9% profit margin uplift and a premium future earnings multiple without stretching assumptions?

Result: Fair Value of $147.00 (UNDERVALUED)

However, the class action lawsuit around Badger Meter’s revenue recognition and the dependence on large municipal AMI projects could pressure investor confidence if legal or project risks escalate.

Another View: Badger Meter Through A P/E Lens

While the most popular Badger Meter narrative points to a fair value of $147.00 and a modest 0.8% undervaluation, the current P/E of 32.6x tells a different story. It sits above both the US Electronic industry at 31.9x and a fair ratio of 26x, which suggests less room for error if growth or margins disappoint. So is this a reasonable premium or a pricing stretch waiting to be tested?

Next Steps

If this mix of lawsuit risk, rich P/E and modest Badger Meter undervaluation leaves you undecided, move quickly to review the underlying data and form your own stance. Then take a closer look at the company’s potential strengths through the 1 key reward

Looking for more investment ideas beyond Badger Meter?

Do not stop at Badger Meter; broaden your watchlist now and give yourself more options before the next round of earnings and headlines reshapes the opportunity set.

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• Hunt for mispriced opportunities that pair quality with attractive valuations using the 44 high quality undervalued stocks.
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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.