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On Monday, Stifel analysts adjusted their outlook on Crane Co. (NYSE:CR), a diversified manufacturer of industrial products, by lowering the price target from $170.00 to $144.00. Despite this change, they opted to maintain a Hold rating on the company’s shares. According to InvestingPro data, Crane’s stock currently trades at $140.89, with analyst targets ranging from $144 to $206. The revision was based on expectations of a modest industrial recession in the United States, anticipated to occur from the second half of 2025 through the first half of 2026.
The Stifel analysts predict that the upcoming economic downturn will be driven by U.S. trade policies, which are expected to create uncertainty in the market. This uncertainty is likely to lead to reduced capital and operating expenditures from customers. The analysts foresee these conditions impacting Crane’s business operations, potentially leading to a slowdown in production for the company and its customers. However, Crane has demonstrated resilience with a 14.45% revenue growth in the last twelve months and maintains strong financial health, as indicated by InvestingPro’s overall health score.
The report also highlighted concerns about potential disruptions to supply chains. These disruptions could further complicate the production process for Crane and its clientele, adding to the challenges faced during the projected industrial recession period.
Crane Co., which operates in various sectors including aerospace, electronics, and vending machines, is poised to navigate through the expected economic headwinds. The company’s diverse portfolio may offer some resilience against the forecasted downturn in industrial activity. With a market capitalization of $8.1 billion and a 55-year track record of maintaining dividend payments, as revealed by InvestingPro, the company shows fundamental strength. Investors should note that Crane’s next earnings report is scheduled for April 28, 2025.
Stifel’s revised price target of $144.00 reflects a more cautious valuation of Crane Co. shares in light of the anticipated market conditions. The Hold rating suggests that the analysts see the company as adequately valued at the current levels, considering the potential challenges ahead. This aligns with InvestingPro’s Fair Value assessment, which indicates the stock is currently trading near its fair value. InvestingPro subscribers have access to over 10 additional key insights about Crane Co., along with comprehensive financial metrics and analysis.
In other recent news, Crane Co. reported its fourth-quarter 2024 earnings, which fell short of Wall Street expectations. The company announced an earnings per share (EPS) of $1.26, missing the forecast of $1.29, and revenue of $544 million, below the anticipated $578.57 million. Despite these misses, Crane Co. demonstrated a strong annual performance with a 28% increase in adjusted EPS for the full year. Looking ahead, the company projects a 12% growth in EPS for 2025, with strong demand expected in the aerospace, defense, and cryogenics markets.
In analyst updates, DA Davidson maintained a Buy rating on Crane Co. with a $200 price target, reflecting confidence in the company’s strategic initiatives and potential for outperformance. Meanwhile, Stifel analysts held a Hold rating with a $170 price target, citing optimism about Crane’s organic growth potential, particularly in the Aerospace & Electronics segment. Both analyst firms highlighted the strengths of Crane’s business system and strategic direction showcased during its recent Investor Day.
Additionally, Crane Co. has been focusing on mergers and acquisitions, targeting opportunities in the $50-100 million range. The company remains optimistic about continued demand in its key markets, supported by positive guidance and strategic initiatives. Investors and market watchers will likely continue to monitor Crane’s performance and strategic execution in the coming months.
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