Jefferies says Elster (ELT) is Itron's (ITRI) closest pure-play metering comparison and that shares of Itron would be value at $55-plus when applying the takeout multiples of Melrose's bid for Eslter. However, Jefferies points out that Elster is more leveraged to the fast growing and highly profitable gas business than Itron. The firm reiterates a Buy rating on shares of Itron with a $45 price target.
Happy demi-anniversary, stock market rally. Will the honeymoon ever end?