PH - Crane Getting Some Credit For Cycle Leverage But Has More To Give

• Crane is off to a good start in this upturn, with revenue ahead of expectations and better margin leverage, and around half of the business really has yet to turn.
• MRO and debottlenecking is helping the PFT business now, but project activity should start ramping up in 2022. Longer term, management is focusing on product innovation to drive new opportunities.
• Commercial aerospace is a multiyear recovery story, but one that management wants to augment by leveraging product development opportunities in areas like electrification and thermal management.
• Mid single-digit FCF growth and mid-teens margins can support a double-digit return from here, and there's still room beyond that for beat-and-raise performance.

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