Wedbush Maintains Outperform on Itron

Wedbush is out with its report today on Itron ITRI, maintaining Outperform. In a note to clients, Wedbush writes, "We maintain our OUTPERFORM and our $80 target. Our target is based on a 20x multiple on 2012 EPS estimates, as we expect Itron's valuation to normalize with modest improvement in Itron-NA bookings trends and on visibility for European AMI project starts. Shares of Itron have traded at a historical average multiple of 22x rolling forward 12-month consensus EPS, and Smart Grid peers are trading at 19.8x and 16.2x 2011 and 2012 estimates, respectively. With the shares trading at 11.8x 2012 estimates, more than one standard deviation below long-term averages, we see significant potential upside from these levels." Shares of ITRI closed Wednesday at $47.25.