First Read Crane Co.: Solid beat on better Aero. FY guidance raise

研报英文原文证据摘录

First Read Crane Co.: Solid beat on better Aero. FY guidance raise

Forecast returns

Forecast price appreciation 1.6%

Forecast dividend yield 0.5%

Forecast stock return 2.1%

Market return assumption 9.3%

Forecast excess return -7.2%

Company Description

Crane is a diversified manufacturer of highly engineered industrial products, competing in

various niche markets. Following the separation from Crane NXT in 2023, the company

operates in three segments: Process Flow Technologies; Aerospace and Electronics; and

Engineered Materials. Sales (ex-PMT segment) in 2022 were ~$2bn.

Valuation Method and Risk Statement

Valuation: We apply relative P/E methodology to value CR.

Risk Statement: The Electrical Equipment and Multi Industry sector faces a broad range of

risks. It is cyclical in nature with exposure to the underlying cycles inherent in everything from

aviation, auto, trucking and trains to construction and consumer electronics to mining,

power, oil and gas and more depending on the specific stock. EEMI companies are subject to

risks associated with unexpected changes in the underlying global macro environment,

currency and interest rate movements, commodity price inflation as well as company specific

execution, M&A, integration, and changes in the competitive or regulatory environment.

These changes can be in the form of product technology (e.g., solar, energy storage, electric

vehicles), ecommerce and other digital disruption and/or channel disintermediation. Capacity

and related pricing pressures are also a risk through the cycle. Finally, these multinational

companies are subject to additional uncertainty due to pending and regulatory policy

changes taking place in the United States and internationally. Multi-Industry companies

including Crane Co.