DA Davidson reaffirmed its Buy rating on Crane NXT (NYSE:CXT) and left its price target unchanged at $85.00, pointing to sales results that outpaced the firm's forecasts and a portfolio mix that favored international Currency and DLRA activity. The $85.00 target implies around a 62% potential gain from the current market price of $52.53, and sits well above InvestingPro's Fair Value estimate, supporting DA Davidson's view that the shares are undervalued.
Sales and revenue performance
Crane NXT posted sales above DA Davidson's projections, with international Currency and the DLRA businesses identified as the primary growth drivers. Core CPI sales, which were flat year over year, modestly exceeded expectations. The Gaming segment provided a cushion, offsetting softness in some other end markets. Together, these factors helped drive revenue growth of 11.43% over the trailing twelve months, lifting total revenues to $1.66 billion.
Profitability and margin dynamics
Operating profits were slightly below DA Davidson's estimates. The report singled out SAT margin as notably underperforming, attributing the weakness to higher manufacturing costs tied to outsized international Currency demand. Despite the margin pressure, the company reported more than a 50% year-over-year increase in SAT backlog, and management disclosed 20 denominational wins for 2025, including 11 announced in the fourth quarter.
Guidance and financial health
DA Davidson described Crane NXT's 2026 earnings-per-share guidance as "a bit light," citing comparisons to international Currency fourth quarter results, elevated costs, and incremental investments relative to the firm's model. By contrast, the CPI outlook was consistent with expectations. InvestingPro metrics continue to rate Crane NXT's overall financial health as "GOOD."
Acquisition progress and regulatory pause
Separately, Crane NXT has completed the initial phase of its acquisition of Antares Vision S.p.A., acquiring approximately 32% on a fully diluted basis for a total consideration of 117 million at 5.00 per share, following receipt of necessary regulatory approvals. However, the takeover process has been temporarily delayed: Italy's market regulator Consob has suspended the time limit for reviewing the takeover bid, with the suspension set not to exceed 15 days beginning January 15, 2026. Antares Vision has stated that it will promptly disclose when the review period reopens. These developments form part of Crane NXT's efforts to increase its holdings in Antares Vision.
Analyst stance
After weighing sales beats, margin challenges, backlog growth, and the progress of the Antares Vision transaction, DA Davidson maintained its Buy rating and $85.00 price target. The firm's analysis highlights a mix of stronger top-line momentum and near-term margin and regulatory uncertainties that inform its positioning.
Summary prepared from company results and DA Davidson's assessment of Crane NXT's recent operating performance, guidance, and strategic acquisition activity.