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On Monday, DA Davidson maintained a positive outlook on Crane NXT (NYSE: CXT), reiterating a Buy rating and a price target of $100.00. The firm’s stance follows a recent multi-city non-deal roadshow (NDR) trip, which featured interactions with Crane NXT’s top executives, including President and CEO Aaron Saak, SVP and CFO Christina Cristiano, and VP of Investor Relations Matt Roache.
During the roadshow, DA Davidson analysts were able to delve into the company’s segment-level details and the key assumptions that support their forecast for a significant earnings increase by 2026. The analysts expect 2025 to be a transitional year for Crane NXT, setting the stage for substantial earnings growth from that base year. They anticipate that the company’s balance sheet and free cash flow (FCF) profile will not only support continued sound execution but also provide the capacity for incremental mergers and acquisitions (M&A) activities.
The analysts’ commentary highlighted the company’s strategic positioning and operational plans, which are expected to drive performance in the coming years. With a robust gross profit margin of 44.7% and revenue growth of 6.86% over the last twelve months, they noted that the insights gained from the NDR trip reinforced their bullish perspective on the company’s prospects.
Crane NXT’s financial health and potential for growth were focal points of the discussion, with a particular emphasis on the company’s ability to scale earnings significantly from the 2025 baseline. The analysts expressed confidence in Crane NXT’s management team and their ability to execute the company’s strategic initiatives effectively, supported by the company’s "GOOD" Financial Health Score from InvestingPro, which evaluates multiple financial metrics including profitability, cash flow, and relative value measures.
The reiteration of the Buy rating and $100.00 price target by DA Davidson underscores the firm’s expectation that Crane NXT is well-positioned for a breakout in earnings and an enhanced financial profile conducive to strategic growth opportunities. This outlook is based on the company’s current trajectory, trading near its 52-week low of $52.89, and the analysts’ assessment of its future potential. Detailed analysis and additional insights are available in the comprehensive Pro Research Report on InvestingPro, which covers over 1,400 US stocks with deep-dive analysis and actionable intelligence.
In other recent news, Crane NXT reported its fourth-quarter earnings, which slightly surpassed expectations with an adjusted earnings per share of $1.20, compared to the anticipated $1.19. However, the company’s revenue of $399 million fell short of the analyst consensus of $405.62 million. Looking ahead, Crane NXT’s 2025 earnings guidance of $4.00 to $4.30 per share is below the $4.39 projected by analysts. The company noted an 11.8% year-over-year increase in fourth-quarter sales, driven by growth from acquisitions and core sales. The Crane Payment Innovations segment experienced a slight revenue decline, while Security and Authentication Technologies saw a significant 29.9% sales increase.
Baird analysts recently raised Crane NXT’s stock price target from $76.00 to $85.00, maintaining an Outperform rating. They highlighted the company’s potential for growth despite a soft start to the year due to factors like equipment upgrades and CPI timing. Baird also pointed out that Crane NXT’s merger and acquisition activities could provide additional opportunities. The company’s market position is considered attractive, with significant upcoming catalysts expected. Crane NXT announced a Q1 2025 dividend of $0.17 per share, a 6% increase from the previous year.
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