Goldman Initiates Itron At Sell

Goldman Sachs has published a research report on Itron, Inc. ITRI and has initiated coverage on the company at Sell. In the report, Goldman writes "We initiate coverage of Itron, a leading global supplier of electricity, gas and water meters and smart grid solutions with a Sell rating with 22% potential downside to our $45, 12-month price target. We are positive on the industry's AMI transition but see Itron as a share donor in 2012-2013. Brisk 2006-08 order flow is driving robust 2010-11 financials, but we expect a lull in 2011 orders – and thus decelerating 2012 results – owing to (1) post-stimulus inertia across domestic utilities, (2) global austerity and (3) a more gradual ramp for European customers. We estimate $3.85/$4.25/$3.25 for 2010/11/12E EPS and do not expect multiple expansion." Goldman has also issued a $46 price target on Itron, which closed yesterday at $56.33.