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On Friday, DA Davidson adjusted its outlook on Crane NXT (NYSE:CXT) shares, reducing the price target from $100.00 to $85.00 while maintaining a Buy rating. According to InvestingPro data, the stock currently trades at $50.96, suggesting significant upside potential despite two analysts recently revising their earnings expectations downward. The adjustment comes as the firm recalibrates its projections for the years 2025 and 2026. The revised forecast accounts for a modest decline in the organic growth expectations within the company’s Crane Payment Innovations (CPI) segment, which has been somewhat offset by a more optimistic view on international currency factors and the inclusion of DLRA.
Despite the reduced price target, Crane NXT’s position in several markets appears stable, supported by a healthy 43.4% gross profit margin and 9.3% revenue growth over the last twelve months. The analyst noted that, outside of the Vending segment, the end market outlooks for CPI remain unchanged. There has been a significant increase in Gaming orders both year-over-year and quarter-over-quarter. Additionally, international Currency bookings continue to be robust, with Crane NXT capitalizing on its unique technology to expand its market share. The company is also benefiting from a steady U.S. Government cycle.
The firm’s balance sheet and free cash flow (FCF) profile are described as solid by the analyst, suggesting a healthy financial standing. Furthermore, the company’s pipeline for mergers and acquisitions (M&A) remains active, which could signal ongoing strategic growth initiatives.
In summary, DA Davidson reaffirms its Buy rating for Crane NXT, but has adjusted the price target to $85, reflecting a more conservative valuation while still recognizing the company’s strong market performance and financial health.
In other recent news, Crane NXT reported its first-quarter 2025 financial results, surpassing earnings and revenue expectations. The company achieved an adjusted earnings per share (EPS) of $0.54, exceeding the forecasted $0.5279, while revenue reached $330.3 million, surpassing the anticipated $318.47 million. Crane NXT also completed the acquisition of De La Rue (LON:DLAR) Authentication Solutions, a strategic move to enhance its authentication capabilities. The acquisition is expected to contribute $80 to $90 million in revenue for 2025. Analyst firms have noted the company’s resilience, with Crane NXT maintaining its full-year adjusted EPS guidance at $4.00-$4.30. The company’s strategic focus on mergers and acquisitions remains robust, with an active funnel for future transactions. Crane NXT’s recent developments also include a strong backlog in its international currency business, providing confidence in its sales outlook for the year.
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