Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - Wolfe Research initiated coverage on Crane (NYSE:CR) with an Outperform rating and a price target of $215.00, representing 17% upside potential. This target aligns with broader analyst sentiment, as InvestingPro data shows an average analyst upside of 19% and a high target of $235.
The research firm highlighted that Crane shares have risen approximately 20% year-to-date, placing the stock at the lower end of Wolfe’s aerospace coverage universe, which has averaged 48% growth, while modestly outperforming the S&P 500’s 16% gain.
Crane is positioned for record sales and earnings growth in 2026, driven by the $1.15 billion PSI acquisition and continued organic momentum, with sales expected to grow 8% in 2025 before accelerating to 23% in 2026. This growth trajectory comes as Crane maintains strong financial health, with InvestingPro reporting the company holds more cash than debt and has maintained dividend payments for an impressive 55 consecutive years.
Wolfe Research’s price target is based on approximately 28 times its 2027 earnings per share estimate of $7.61, which is 1% above consensus, with the target multiple reflecting a blend of Process Flow Technologies peers and Aerospace & Electronics peers.
The firm identified several downside risks, including a broader aerospace slowdown, challenges integrating PSI, difficulties applying the Crane Business System to expand PSI margins, a worse-than-expected M&A environment, and prolonged softness in chemical markets.
In other recent news, Crane Co reported its third-quarter earnings for 2025, exceeding expectations with an adjusted earnings per share of $1.64, surpassing the forecasted $1.43. This represents a 14.69% surprise for investors. Despite a slight miss in revenue, the company showed significant growth in core sales and operating profit. The positive earnings report was accompanied by an optimistic outlook for future quarters. Additionally, Crane Co’s performance has drawn attention from various analyst firms, though specific upgrades or downgrades were not mentioned in the latest reports. These recent developments highlight Crane Co’s strong financial performance and strategic growth. Investors are closely monitoring the company’s future performance based on these results.
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