DA Davidson has confirmed a Buy recommendation and reiterated a $235.00 price target on Crane Co (NYSE: CR), citing the company’s recent acquisition activity and what the firm describes as a favorable business outlook. The $235 target implies roughly 31% upside from the then-current share price of $179.71, despite the stock having declined about 12.5% over the prior week, according to the InvestingPro data cited.
In updating its financial model, DA Davidson incorporated four recent additions to Crane’s portfolio - Druck, Reuter-Stokes, Panametrics and optek-Danulat - and revised its estimates for fiscal 2026 and 2027. The firm expects those deals to be slightly accretive to Crane’s earnings per share in 2026, with a larger incremental contribution projected for 2027 and subsequent years.
DA Davidson emphasized two parts of Crane’s business in its assessment. The Aerospace & Electronics segment was noted for having strong visibility supported by a robust backlog, while the Process Flow Technologies segment was expected to continue delivering market outperformance and capturing pricing, according to the note.
The research house also expressed comfort with the planned leadership change at Crane, describing the company’s execution as "best-in-class" as it maintained its Buy rating and price target.
On the results front, Crane’s fourth-quarter 2025 adjusted earnings per share came in at $1.53, matching analysts’ consensus. Revenue for the quarter, however, was reported at $581 million, below the referenced expectation of $624.82 million, representing a 7.01% shortfall against revenue forecasts. The revenue miss has been noted by investors and analysts.
The update further stated that there were no recent updates on mergers or acquisitions involving Crane Co beyond the acquisitions DA Davidson incorporated into its model. In addition, the note said there have been no analyst upgrades or downgrades for the company reported at this time.
Summary
DA Davidson retains a Buy rating and a $235 price target on Crane after updating 2026 and 2027 estimates to reflect four acquisitions. The firm anticipates modest EPS accretion in 2026 with greater contribution commencing in 2027, highlights strong backlog visibility in Aerospace & Electronics, and notes Process Flow Technologies' expected market outperformance and price capture. Crane's adjusted Q4 2025 EPS matched expectations while revenue lagged forecasts.
Key points
- DA Davidson reaffirmed a Buy rating and a $235 target on Crane, implying ~31% upside from the referenced share price.
- The firm adjusted 2026 and 2027 estimates after adding Druck, Reuter-Stokes, Panametrics and optek-Danulat to its model, expecting slight EPS accretion in 2026 and stronger contributions from 2027 onward.
- Q4 2025 adjusted EPS was $1.53, in line with expectations, while revenue of $581 million missed the $624.82 million forecast by 7.01%.
Risks and uncertainties
- Revenue shortfalls: The reported Q4 2025 revenue fell short of expectations, which is a near-term uncertainty for market sentiment - relevant to industrials and investors monitoring top-line performance.
- Integration and contribution timing: While DA Davidson projects accretion from recent acquisitions, the degree and timing of incremental EPS contribution beyond 2026 remain dependent on successful integration - a risk for corporate and transaction-related stakeholders.
- Leadership transition: Although the analyst expressed confidence in management execution through the CEO transition, any executional issues during the change in leadership would introduce uncertainty for operational continuity and investor confidence.
These items together provide a snapshot of Crane Co’s recent financial performance, the analyst view that underpins the reiterated Buy rating, and the near-term areas that market participants will likely watch.