CR - Crane Is Just Starting To Lift

• Crane has been beating expectations and should have further growth on the way, as later-cycle process markets recover, aerospace builds increase, and cash-based transaction volumes recover.
• The aerospace business has established leadership in areas like braking and sensing and could pick second-source opportunities; this is also far and away the most profitable segment at normalized revenue.
• There are opportunities to grow the process business in/into adjacent markets, but M&A could accelerate the process.
• Crane's PMT automation-enabling solutions should see increased demand in the face of tight labor markets.
• Crane looks undervalued even as this recovery matures, and the upcoming Investor Day could highlight some strategic options.

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