Auriga Reiterates a 'Buy' on Crane (CR); Solid Year Overall But 4Q Expectations Fall Short of Lofty Expectations

Auriga reiterates a 'Buy' on Crane (NYSE: CR) price target of $56.00.

Auriga analyst says, "CR reported Q4 adjusted EPS of $0.88, which was slightly behind our in-line estimate of $0.90 with the shortfall almost entirely stemming from lighter revenue. Initial EPS guidance was set at $3.75 to $3.95 representing growth of 9% to 15%. Although revenue and backlog trends in the quarter were disappointing relieve to expectations, we note the company still grew EPS more than 30% in 2011, and view the pullback as a buying opportunity on the stock."

"In tandem with Q4 results, the company extended its asbestos liability to 2021, from 2017 previously, which resulted in a pre-tax charge of $242 mln (net of insurance receivable allowance of $44 mln). Although the headline held dramatic effect, we note an extension of the liability was entirely expected and view it as purely an accounting event. In addition, the $40 to $50 mln annual cash cost estimate did not change, which we view as the more meaningful metric to follow."

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 $47.41 yesterday.

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