UBS Maintains a 'Buy' on Crane (CR); Stay Constructive Into 4Q on 2012 Upside

UBS maintains a 'Buy' on Crane (NYSE: CR) price target raised from $49 to $55.

UBS analyst says, "We think CR reports 4Q at $0.90 next Monday January 23rd after the close, with particular top line strength in Fluid (45% rev, UBEe +13% y/y) and Eng Materials (on RV and reefers, ~10% rev, UBSe +12% y/y). Aero/Defense likely saw strong sales but weak y/y growth (+2% y/y) on much tougher comps and product cadence."

"We see sizable 2012 end market tailwinds in 40% of the portfolio – commercial aero, bizjet, RJ, reefer, energy, chemical), modest tailwinds/stability in 50% (RV, non-res, industrial), and head winds in only 10% (military/defense). In addition, we think CR continues to drive growth above end market levels with a host of firm-specific initiatives (new products, sales force expansion, deal synergies). Initial guidance likely reflects CR's conservatism so our $4.00 may end up at the high end, but we feel our estimate is firmly achievable ex a macro shock."

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 $50.19 yesterday.

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