Crane Company (CR) Stock Forecast & Price Target

Crane's financial outlook appears positive due to an anticipated expansion in segment-level operating profit margins, projected to grow by 60 basis points year-over-year to exceed 22.5%. The company's diverse end markets, including cryogenics, hydrogen, pharmaceuticals, and oil and gas, are expected to drive revenue growth in 2025, bolstered by new product innovations and effective price management, which offset inflationary pressures. Additionally, Crane's strong execution track record, significant backlog, and operational improvements in both its aerospace and process flow segments are likely to support robust organic growth rates of 7% to 9% over the coming years.

Crane's stock outlook is negatively influenced by a downward adjustment in the 2025 EPS estimate, alongside challenges from demand disruption, particularly related to the Boeing 737 MAX production ramp-up. The ongoing inflation of raw material costs such as steel and aluminum poses significant risks to profitability, especially if the company cannot effectively implement pricing strategies. Additionally, uncertainties related to geopolitical factors and macroeconomic conditions may hinder revenue growth, as indicated by guidance that falls short of prior expectations.