05:30 AM EDT, 04/23/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Following CR's beat on Q1 sales and EPS vs. consensus and CFRA expectations, we raise our 12-month target to $150 from $145, valuing shares at 26.5x our 2025 EPS forecast of $5.65 (lifted $0.09; 2024 EPS adjusted to $4.94 from $4.80). CR posted Q1 operating EPS of $1.22 (-3% Y/Y), reflecting tough comps, in our view. CR achieved another quarter of 5% Y/Y core sales growth, with a 20% increase in Aerospace & Electronics revenues more than offsetting cyclical sluggishness in Process Flow Tech (-2%). CR upped 2024 guidance to a range of $4.75-$5.05 (previously $4.55-$4.85) following the announced acquisition of Cryoworks, which expands the Process Flow portfolio into cryogenics, hydrogen, and related high growth applications. We anticipate M&A activity to accelerate in the coming years as a long-term net debt-to-EBITDA of ~2x-3x is targeted (0.3x as of March 31st), with a sale of the slower-growing Engineered Materials business likely being explored as CR's portfolio is shifted to higher growth markets.