GE - Aero Continues To Accelerate For Crane

Summary

• Crane delivered good fourth quarter results, with healthy outperformance at the segment profit level and good core growth in all of the major segments.
• Aerospace should enjoy strong demand in 2023, but Crane may remain capacity-constrained, and Process Flow could enjoy support from leverage to later-cycle end markets.
• The outlook for the payments business is more mixed given the uncertainty around banknote orders.
• Mid-single digit revenue and FCF can support a high-single digit return from here, and the shares do look undervalued on EBITDA.

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