DA Davidson maintains Crane stock Buy rating, $200 target

Published 24/05/2025, 11:56
DA Davidson maintains Crane stock Buy rating, $200 target

On Monday, DA Davidson reaffirmed its Buy rating and $200.00 price target for Crane (NYSE:CR), following a virtual meeting with the company’s recently appointed Executive Vice President and Chief Operating Officer, Alex Alcala. According to InvestingPro data, the company maintains strong financial health with an overall score of "GOOD" and has consistently paid dividends for 55 consecutive years. Alcala, who has been with Crane for nearly 12 years and spent a decade in the company’s Payment & Merchandising Technologies (PFT) division, emphasized Crane’s commitment to commercial excellence, growth in high-potential markets, and a strategic approach to mergers and acquisitions (M&A).

The analyst from DA Davidson highlighted Crane’s execution as best-in-class and noted the company’s strong balance sheet, which includes net cash, positioning Crane to take advantage of potential M&A opportunities as they arise through the year and into 2026.

Crane’s strategic emphasis on commercial excellence involves refining its sales and marketing strategies to better meet customer needs and outperform competitors. By targeting higher growth markets, the company aims to align its portfolio with areas that offer more significant expansion prospects.

The disciplined approach to M&A mentioned by Alcala refers to Crane’s careful selection of acquisition targets that are expected to complement its existing operations and contribute to long-term growth. This strategy is supported by the company’s robust balance sheet, which provides the financial flexibility necessary to pursue such transactions.

DA Davidson’s endorsement of Crane’s stock remains unchanged, with the firm maintaining its estimates and reiterating the $200 price target. The analyst’s comments underscore confidence in Crane’s leadership and strategic direction, suggesting a positive outlook for the company’s future performance. While the company shows strong fundamentals with a 17.2% revenue growth and robust profitability metrics, InvestingPro analysis indicates the stock may be trading above its Fair Value. Discover 12 additional exclusive ProTips and comprehensive financial analysis for Crane with an InvestingPro subscription.

In other recent news, Crane Co. reported a strong first quarter in 2025, with earnings per share (EPS) of $1.39, surpassing the forecasted $1.27. Despite a slight revenue miss, coming in at $557.6 million against a projected $564 million, the company showed resilience with a 7.5% increase in core sales. DA Davidson reaffirmed its Buy rating for Crane, setting a $200 price target, highlighting the company’s robust financial position and record backlog, which increased 12% to $1.35 billion. The Aerospace & Electronics segment was a significant growth driver, contributing to the company’s strong quarterly performance. Stifel analysts also raised their price target for Crane to $150, maintaining a Hold rating due to the company’s exceptional margin performance in the Aerospace & Electronics segment. However, they noted potential challenges from new tariffs affecting the Process Flow Technologies segment. Crane’s management remains confident in the company’s trajectory, despite external economic factors. The firm continues to explore mergers and acquisitions, supported by a strong balance sheet with $188 million in net cash.

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