Northland has revised its price target for Crane NXT (CXT, Financial), raising it from $51 to $57, while maintaining a Market Perform rating. The adjustment follows the release of the company's robust first-quarter results, particularly highlighting significant growth in its international currency division, according to an analyst's report post-earnings. These developments reflect Crane NXT's strong performance and suggest potential for future gains.
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 59.09% from the current price of $52.80. 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.
