Canaccord Genuity Cuts Price target on Crane Co. (CR) Following 2016 Guidance

Canaccord Genuity maintained a Hold rating on Crane (NYSE: CR), and cut the price target to $52.00 (from $58.00), following the company's 2016 guidance release. FY16 guidance implies revenues of ~$2.74B, but FX is a ~ $55M headwind. Canaccord agrees with management that the 2016 guidance largely de-risks the outlook, with still some overhang in the FH segment.

Analyst Ken Herbert commented, "On a core sales basis, the FY16 guidance implies revenues of ~$2.74B, but FX is a ~ $55M headwind. Our FY16 revenue estimate is $2.7B, basically in line with guidance, with the FX impact hitting primarily the P&MT and FH segments. We see the potential for limited revenue upside in the A&E and the P&MT segments, but we believe any 2016 upside will come from better than expected margins, with the most potential variability still in the FH segment. The company posted full year 2015 EBIT margins of 14.3%, with stronger than expected Q4/15 margins in each segment with the exception of the FH segment."

For an analyst ratings summary and ratings history on Crane click here. For more ratings news on Crane click here.

Shares of Crane closed at $46.52 yesterday.

You May Also Be Interested In

• Backblaze Inc (BLZE) PT Raised to $14 at Needham
• Lucid Capital Markets Starts Palmer Square Capital BDC (PSBD) at Neutral
• Leerink Starts Rapport Therapeutics (RAPP) at Outperform