DA Davidson maintains Crane stock Buy rating, $185 target

Published 28/01/2025, 16:20
DA Davidson maintains Crane stock Buy rating, $185 target

Crane announced its 2025 guidance, which was set $0.15 below DA Davidson’s midpoint estimate, reflecting a conservative organic growth outlook of 4-6%, compared to the 6% growth projected by DA Davidson. The company is scheduled to conduct a conference call at 10 a.m. ET tomorrow to discuss the results in detail.For deeper insights into Crane’s valuation and growth prospects, investors can access comprehensive analysis and 10+ additional ProTips through InvestingPro’s detailed research reports.DA Davidson remains positive on Crane shares, maintaining a Buy rating with a price target of $185. However, the firm has indicated that this target is under review as they conduct further analysis of the company’s results.

Both core sales and orders witnessed an 8% year-over-year increase, with the backlog climbing to a record $1.24 billion, primarily fueled by the Aerospace & Electronics (A&E) segment. Following the divestiture of its Engineered Materials (EM) division, Crane now boasts over $250 million in net cash, which strategically positions the company for potential mergers and acquisitions.

Crane announced its 2025 guidance, which was set $0.15 below DA Davidson’s midpoint estimate, reflecting a conservative organic growth outlook of 4-6%, compared to the 6% growth projected by DA Davidson. The company is scheduled to conduct a conference call at 10 a.m. ET tomorrow to discuss the results in detail.

DA Davidson remains positive on Crane shares, maintaining a Buy rating with a price target of $185. However, the firm has indicated that this target is under review as they conduct further analysis of the company’s results.

In other recent news, Crane Co. reported its Q4 earnings that fell short of analyst expectations, with adjusted earnings per share of $1.26, missing the projected $1.29. The company’s revenue for the quarter was reported at $544 million, lower than the anticipated $578.57 million. Despite this, Crane’s Q4 revenue experienced a 12% growth year-over-year, driven by an 8% core sales growth and a 4% increase from acquisitions. Notably, the company’s Aerospace & Electronics segment and the Process Flow Technologies segment reported sales increases of 11% and 13% respectively.

In addition to these developments, Crane Co. issued an optimistic guidance for 2025. The company expects its adjusted EPS to range between $5.30 and $5.60, surpassing the consensus estimate of $5.51. This projection indicates a 12% growth at the midpoint compared to 2024. Crane also anticipates a total sales growth of approximately 5% in 2025, driven by a core sales growth of 4-6% and a 1-2% benefit from acquisitions.

Stifel analysts have maintained their Hold rating on Crane Co. shares, with a constant price target of $170.00. They highlighted Crane’s robust year-end performance and noted that the company surpassed its original midpoint guidance. The analysts also observed that Crane’s performance in the Aerospace & Electronics and Process Flow Technologies sectors contributed significantly to the overall positive results.

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