Baird says this security stock is a buy that can rally nearly 40%
Investors are overlooking Crane NXT and its long-term earnings potential, according to Baird. Analyst Michael Halloran initiated coverage of the company with an outperform rating and $77 price target, reflecting 38.5% upside from Wednesday’s close. That is a sharp turnaround for the beaten-down stock, which has shed 2.2% this year. Crane specializes in micro-optic securities to protect products against counterfeits. This is also used to differentiate legitimate currency bills from fake ones. Halloran said the firm is a buyer of Crane ahead of its “anticipated end market inflection,” which the analyst believes will fuel differentiated earnings growth in 2026 and beyond. CXT YTD mountain CXT stock this year. “While a modest estimate reset is coming near-term, we see an attractive financial profile driven by attractive growth exposures, inflecting end-markets into 2026+, and significant capital optionality/aspirations all of which we view as undervalued relative to significant multi-year earnings power,” Halloran said in a Wednesday note to clients, noting that the near-term reset is due to a softer currency outlook for 2025. The company has a best-in-class gross margin and EBITDA margin, and trades at a steep discount to its financial profile, Halloran added. “We see low-to-mid teen+ EBITDA multiples emerging over time with execution, greater investor discovery (underfollowed/covered, some misperceptions) and M & A,” the analyst said. Another factor behind Halloran’s bullish investment thesis is Crane’s strong customer relationships, which generate high recurring revenue for the company. The stock is well liked by analysts. LSEG data shows that 5 of the 6 analysts covering the stock have a buy or strong buy rating. Just one rates it as a hold.
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