Stifel maintains Crane stock Hold rating, $170 price target

Published 28/01/2025, 14:44
Stifel maintains Crane stock Hold rating, $170 price target

On Tuesday, Stifel analysts maintained their Hold rating on Crane Co. (NYSE:CR) shares, with a constant price target of $170.00. Currently trading at $156.44, the stock carries a P/E ratio of 33.65, suggesting a premium valuation. The firm's commentary highlighted Crane's robust year-end performance, noting that the company reported an adjusted full-year earnings per share (EPS) of $4.88. This result surpassed the company's original midpoint guidance of $4.70, driven by strong performance in its Process Flow Technologies (PFT) and Aerospace & Electronics (A&E) segments. The underperformance of the now-divested Engineered Materials (EM) business was also mentioned.

The analysts at Stifel observed that Crane's success in the past year was noteworthy, especially considering the divestiture of its EM segment. According to InvestingPro data, the company achieved impressive revenue growth of 11.63% and maintains a strong financial health score. Despite this change in the business structure, the company managed to exceed expectations in its earnings. The analysts emphasized that Crane's performance in the PFT and A&E sectors was particularly commendable and contributed significantly to the overall positive results.

Stifel's maintained Hold rating indicates their view that Crane's stock should offer a stable investment return without significant upside or downside risks at the current price level. The company has maintained dividend payments for 54 consecutive years, demonstrating long-term stability. Analyst targets range from $143 to $200, reflecting mixed views on the stock's potential. The analysts seem to find the company's guidance realistic and well-adjusted to the prevailing economic conditions, suggesting a cautious but stable outlook for Crane's future performance.

The steady price target of $170.00 by Stifel reflects a neutral stance on the stock's growth potential. This decision is likely based on Crane's current financial results and the balanced guidance provided by the company for the upcoming period. The analysts have not indicated any immediate factors that could significantly alter the stock's valuation in the near term.

In conclusion, Stifel's analysis points to a solid performance by Crane Co. in the previous year, with the company surpassing its earnings guidance. Based on InvestingPro's Fair Value analysis, the stock appears to be trading above its intrinsic value. The firm's decision to maintain both the Hold rating and the price target suggests a belief in the company's stability and a balanced approach to its stock in the current economic environment. For deeper insights into Crane's valuation and over 10 additional ProTips, including detailed financial health metrics, check out the comprehensive Pro Research Report available exclusively on InvestingPro.

In other recent news, Crane Co. announced Q4 earnings that did not meet analyst expectations, with adjusted earnings per share of $1.26, falling short of the projected $1.29. The company's revenue was reported at $544 million, lower than the anticipated $578.57 million. Despite this, Crane's Q4 revenue experienced a 12% growth year-over-year, bolstered by an 8% core sales growth and a 4% increase from acquisitions.

Particularly noteworthy was the company's Aerospace & Electronics segment, which reported a sales increase of 11% to $237 million, and the Process Flow Technologies segment, which saw a 13% rise to $307 million. These recent developments indicate a steady growth within the company's operations.

Looking towards the future, Crane Co. has issued an optimistic guidance for 2025. The company expects its adjusted EPS to range between $5.30 and $5.60, a figure that surpasses the consensus estimate of $5.51. This projection reflects a 12% growth at the midpoint compared to 2024. Furthermore, Crane anticipates a total sales growth of approximately 5% in 2025, fueled by a core sales growth of 4-6% and a 1-2% benefit from acquisitions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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