DA Davidson maintains Crane stock Buy rating, $200 target

Published 29/04/2025, 16:06
DA Davidson maintains Crane stock Buy rating, $200 target

On Tuesday, DA Davidson reaffirmed its Buy rating and $200.00 price target for Crane Co. (NYSE:CR), following the company’s first-quarter 2025 performance which surpassed expectations. According to InvestingPro data, Crane maintains a "GOOD" financial health score, with particularly strong profitability metrics. Crane reported quarterly sales that exceeded DA Davidson’s projections, with organic sales growth 2 percentage points higher, primarily driven by its Aerospace & Electronics segment. The company’s adjusted operating profit was $1 million above the firm’s estimates, despite facing a $5 million corporate expense headwind not accounted for in the model. Earnings per share (EPS) also beat expectations by $0.08.

Crane’s core sales and orders experienced a year-over-year increase of 7.5% and 15.6%, respectively, with its backlog climbing 12% to a record $1.35 billion, largely led by the Aerospace & Electronics business. The company’s balance sheet now boasts $188 million in net cash, translating to over $3.00 per share, which positions Crane well for potential mergers and acquisitions, with a notably active pipeline mentioned.

Despite various headwinds, Crane reiterated its guidance range for the year 2025, aligning with DA Davidson’s forecasts. The company’s strong financial position and record backlog underscore its capacity to uphold its business outlook for the year.

The analyst’s commentary highlighted Crane’s robust performance and potential for strategic growth opportunities, emphasizing the company’s solid foundation for future mergers and acquisitions. The affirmation of the 2025 guidance range by Crane demonstrates the company’s confidence in maintaining its growth trajectory.

In other recent news, Crane Co reported its first-quarter 2025 earnings, showcasing a strong performance with earnings per share (EPS) of $1.39, surpassing the forecasted $1.27. Despite a slight miss on revenue, which came in at $557.6 million against a projected $564 million, the company’s strategic direction and operational efficiency were evident. The Aerospace & Electronics and Process Flow Technologies segments were key contributors to this growth. Crane Co maintains a robust mergers and acquisitions (M&A) pipeline, supported by a debt capacity of $1.5 billion, indicating potential future expansion. The company projects an adjusted EPS between $5.30 and $5.60 for the full year 2025. Analysts from UBS and Deutsche Bank (ETR:DBKGn) have shown interest in the company’s tariff impacts and supply chain strategies, with Crane Co confirming its strong backlog and order book. Additionally, Crane Co has not experienced any slowdown in M&A activities, suggesting continued growth prospects.

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