Stifel maintains Crane stock Hold rating, $144 price target

On Tuesday, Stifel analysts maintained their Hold rating on Crane Co. (NYSE:CR) with a steady price target of $144.00, following the company’s first-quarter earnings report. According to InvestingPro data, the stock is currently trading at elevated multiples, with a P/E ratio of 31x and an EV/EBITDA multiple of 23x, suggesting rich valuation levels. For deeper insights into Crane’s valuation metrics and more exclusive analysis, check out the comprehensive Pro Research Report, available to InvestingPro subscribers. Crane Co. surpassed revenue expectations, posting $557.6 million against Stifel’s projection of $547.0 million and the Street’s estimate of $547.9 million. The company’s adjusted earnings per share (EPS) for the quarter came in at $1.39, outperforming Stifel’s forecast of $1.26 and the Street’s consensus of $1.31.

Despite uncertainties related to current U.S. policy, Crane Co. has reaffirmed its full-year 2025 guidance, expecting EPS to be within the range of $5.30 to $5.60. InvestingPro analysis shows the company maintains strong financial health with an overall score of "GOOD," supported by a current ratio of 2.58x and moderate debt levels. The company has also demonstrated its reliability through 55 consecutive years of dividend payments. This is slightly conservative compared to Stifel’s estimate of $5.17 and the Street’s average forecast of $5.49. Sales growth is anticipated to be around 5%, primarily driven by a core sales increase of 4%-6%, which would translate to approximately $2.25 billion in revenue. This aligns closely with Stifel’s revenue estimate of $2.21 billion and is just below the Street’s expectation of $2.27 billion.

The company’s strong quarterly performance was attributed to robust margins, particularly in the Aerospace & Electronics (A&E) segment, which were 230 basis points above Stifel’s model. Management at Crane Co. expressed confidence in their ability to exceed the 2025 EPS projections if it were not for the current policy-driven uncertainties. However, they remain comfortable with their previously stated guidance range, signaling a cautious but steady outlook for the year ahead.

In other recent news, Crane Co. reported its fourth-quarter 2024 earnings, which fell short of Wall Street’s expectations. The company announced an earnings per share (EPS) of $1.26, missing the anticipated $1.29, and reported revenue of $544 million, below the forecasted $578.57 million. Despite these results, Crane’s stock saw a rise in after-hours trading, indicating investor optimism due to a strong overall annual performance and positive guidance for 2025. UBS analyst Damian Karas upgraded Crane’s stock rating from Neutral to Buy, raising the price target to $190, citing the company’s strong balance sheet and potential for mergers and acquisitions. On the other hand, Stifel analysts lowered their price target for Crane to $144 but maintained a Hold rating, reflecting caution due to an anticipated industrial recession. Meanwhile, DA Davidson reaffirmed its Buy rating with a $200 price target, highlighting confidence in Crane’s strategic initiatives and potential for outperformance. These developments come as Crane continues to focus on organic growth and operational excellence, with analysts closely watching the company’s progress toward its growth targets.

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