Itron (ITRI) May Lose BG&E Deal To Silver Spring Networks, Shares Hit Again

It’s been a rough couple of weeks for Itron (ITRI).  About two weeks ago, I wrote about Itron (ITRI) likely losing the big Sempra Energy (SRE) smart meter deal to Esco Tech (ESE) which sent the stock plummeting.  However, the selling didn’t last long and the shares recovered further after posting a strong earnings report.  Today, the stock ran out of steam as it was hit with not only a downgrade out of Macquarie from Neutral to Underperform, but according to Street Insider, it appears they may have lost out on the BG&E smart meter deal to privately held Silver Spring Networks.

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It isn’t a done deal, but apparently Maryland’s Public Service Commission revealed that BG&E is working with privately held Silver Spring Networks, not Itron.  An analyst at Deutsche Bank said that while Itron losing out on this deal is likely, it doesn’t impact their 2010 and 2011 estimates because they believed Itron only had a 30% chance in the first place.  They maintain their Buy rating due to significant opportunities in the EU market.

Shares of ITRI reversed at resistance of the 200 day moving average today and finished down about 7% on heavy volume.

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