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Friday, Baird analysts increased the price target on Crane NXT (NYSE: CXT) shares to $85.00, up from the previous $76.00, while maintaining an Outperform rating. According to InvestingPro data, analyst targets for CXT range from $62 to $100, with the stock currently appearing undervalued based on its Fair Value assessment. The analysts provided insights into the company's prospects, noting that although there are many variables to consider for 2025, including a soft first-quarter guidance due to the timing of the Consumer Price Index (CPI) and a pause in currency production for equipment upgrades, the full-year expectations for 2025 remain positive.
The equipment upgrades are necessary for Crane NXT to prepare for the upcoming U.S. Currency upgrade cycle. Despite the initial slow start, the analysts anticipate a stronger ramp-up throughout the year. The company's impressive gross profit margin of 84.35% and solid diluted earnings per share of $3.19 demonstrate its operational efficiency. For deeper insights into CXT's financial health and growth potential, InvestingPro subscribers can access the comprehensive Pro Research Report, which includes detailed analysis of the company's performance metrics. They also highlighted that the expected exit rates for 2025 and the catalysts for 2026 and beyond align with their forecasts.
Baird's analysis suggests that Crane NXT's differentiated earnings power is still on track, and they believe that the company's merger and acquisition (M&A) activities could present additional opportunities for upside. The current market position is seen as an attractive entry point for investors, especially considering that significant catalysts such as the Federal Reserve/Bureau of Engraving and Printing (BEP) print order and CPI normalization are expected in the coming quarters.
In other recent news, Crane NXT, Co. reported their fourth quarter earnings, which slightly surpassed expectations, but their revenue failed to meet analyst estimates, with the company's 2025 guidance falling below consensus. The industrial technology company posted adjusted earnings per share of $1.20 for Q4, a slight increase over the analyst estimate of $1.19. However, their revenue of $399 million did not reach the consensus forecast of $405.62 million. For the full year 2025, Crane NXT has projected an adjusted EPS between $4.00 and $4.30, which is below the $4.39 analysts were anticipating.
In other developments, Crane NXT's fourth quarter sales saw an increase of 11.8% YoY to $399.1 million, driven by 9.3% growth from acquisitions and 2.8% core sales growth. However, the Crane Payment Innovations segment experienced a slight dip in revenue to $214.9 million, while Security and Authentication Technologies sales rose by 29.9% to $184.2 million. The company ended 2024 with a net leverage ratio of approximately 1.5x and declared a Q1 2025 dividend of $0.17 per share, up 6% from the prior year. These are some of the recent developments at Crane NXT, Co.
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