CR - All Systems Go For Crane As Execution And A Growth Pivot Drive A Major Re-Rating
2024-06-29 04:38:12 ET
Summary
- Crane's strategic pivot has gotten Wall Street's attention, with strong price performance since the fall of 2023.
- Management is repositioning the Process Flow business toward higher-growth opportunities in markets like LNG, hydrogen, pharma, and automation, while using price and mix to drive better margins.
- Crane's platform-agnostic design philosophy gives it operating flexibility without compromising strong leverage to commercial and defense growth over the next decade.
- Valuation is more stretched today, but beat-and-raise quarters help credibility and management is still early in the process of driving improved sustainable growth and margins.
I’m not sure I could have asked for much more than what Crane ( CR ) has done since it announced it was splitting Crane and Crane NXT ( NXT ). Not only did I like that decision, I’ve really liked management’s pivot toward growth opportunities in Process Flow (or PF), it’s new M&A program, and I feel like the messaging to the Street has been on point, not to mention the execution....
All Systems Go For Crane, As Execution And A Growth Pivot Drive A Major Re-Rating