- Crane Co. is set to expand its industrial reach through a significant acquisition from Baker Hughes.
- Analysts offer a cautiously optimistic outlook with a mix of price targets and recommendations.
- GuruFocus presents a potential valuation challenge for Crane Co. over the upcoming year.
Strategic Acquisition to Enhance Crane Co.'s Market Presence
In a strategic move, Crane Co. (CR) has announced its plan to acquire Precision Sensors & Instrumentation from Baker Hughes (BKR) for a value of $1.06 billion. This acquisition encompasses noteworthy brands such as Druck, Reuter-Stokes, and Panametrics, and is poised to significantly enhance Crane Co.’s footprint in aerospace, nuclear, and various other industrial sectors.
The acquisition is projected to contribute $390 million to Crane Co.'s sales by 2025, with an anticipated adjusted EBITDA of approximately $60 million. Crane Co. expects to achieve a 10% return on invested capital within five years, positioning this acquisition as a catalyst for long-term sales growth and enhanced profitability.
Analyst Price Targets and Ratings
The trajectory for Crane Co.'s stock is underscored by insights from eight analysts, who have set their one-year price target at an average of $182.15. Among these estimates, the highest target is $200.00, while the lowest is $150.00. This average target suggests a moderate upside potential of 2.03% from the current market price of $178.53. For a more in-depth analysis, investors can visit the Crane Co (CR, Financial) Forecast page.
Moreover, Crane Co.'s average brokerage recommendation stands at 2.0 from a consensus of nine firms, indicating an "Outperform" status. This rating reflects a scale where 1 represents a Strong Buy and 5 a Sell.
GuruFocus' Valuation Perspective
According to GuruFocus, the estimated GF Value for Crane Co. in the coming year is $136.38. This valuation presents a potential downside of 23.61% from the current price of $178.53. The GF Value is a proprietary metric, calculated based on historical trading multiples and anticipated future performance. For those looking to explore this valuation further, additional details are available on the Crane Co (CR, Financial) Summary page.
