An analyst from DA Davidson, Matt Summerville, has reduced the price target for Crane NXT (CXT, Financial) to $85, down from a previous target of $100, while maintaining a Buy rating on the company's shares. This adjustment follows the company's first-quarter results. The analyst has revised the company's 2025 and 2026 projections, citing a slightly lower expectation for organic growth within the Consumer Price Index (CPI). However, this outlook is somewhat balanced by a more optimistic perspective on international currency conditions. Additionally, the revisions take into account the effects of Crane NXT's acquisition of De La Rue Authentication Solutions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Crane NXT Co (CXT, Financial) is $84.00 with a high estimate of $157.00 and a low estimate of $51.00. The average target implies an upside of 64.84% from the current price of $50.96. More detailed estimate data can be found on the Crane NXT Co (CXT) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Crane NXT Co's (CXT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
CXT Key Business Developments
Release Date: May 08, 2025
- Sales Growth: Increased by 5% year-over-year.
- Adjusted EPS: $0.54.
- Core Sales Decline: 4%, excluding OpSec.
- Adjusted Segment Operating Profit Margin: Approximately 19%.
- Free Cash Flow Conversion: Expected between 90% and 110% for the full year.
- Security and Authentication Technologies Sales Growth: Up 22% compared to the prior year.
- Core Sales Decline in SAT: Approximately 8% due to lower U.S. Currency volumes.
- Adjusted Operating Margin in SAT: Approximately 7%.
- International Currency Backlog: Record high of approximately $370 million.
- Net Leverage: 1.7x at the end of the first quarter, expected to be 2.3x at the end of the second quarter.
- Tariff Impact on Operating Profit: Approximately $25 million, expected to be fully mitigated.
- Updated SAT Sales Growth Guidance: 19% to 21% for the full year.
- Updated CPI Sales Guidance: Revised to a range of negative 2% to flat for the full year.
- Full Year Adjusted Segment Operating Margin Guidance: 25.5% to 26.5%.
- Full Year EPS Guidance: Maintained at $4 to $4.30.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Crane NXT Co (CXT, Financial) reported a 5% increase in sales year-over-year, driven by strong performance from International Currency and the acquisition of OpSec.
- The company achieved a record high backlog in Crane Currency with a book-to-bill ratio of 2.4, indicating strong demand and future revenue potential.
- Crane NXT Co successfully completed the acquisition of De La Rue Authentication Solutions, enhancing its security and authentication technology capabilities.
- The integration of OpSec and De La Rue to form Crane Authentication is on track, expected to accelerate synergies and provide a unified set of products and services.
- The company reaffirmed its full-year adjusted EPS guidance, demonstrating confidence in its financial outlook despite economic uncertainties.
Negative Points
- Core sales declined by approximately 4%, primarily due to lower U.S. Currency sales related to the planned shutdown of key manufacturing equipment.
- The CPI segment experienced a decline in core sales by approximately 2%, driven by lower volumes in gaming and vending end markets.
- Adjusted operating margin decreased due to lower volumes and unfavorable product mix, particularly in the U.S. Currency segment.
- The company faces a significant impact from tariffs, particularly from China, estimated at approximately $20 million, affecting CPI components.
- Free cash flow was impacted by planned lower volumes and the timing of collections, with shipments skewed toward the end of the quarter.
