Crane Company's (CR) $1.15 billion acquisition of Precision Sensors & Instrumentation from Baker Hughes (BKR) will complement its product portfolio, especially the nuclear business, UBS said in a Monday research report.
Crane Company will integrate and grow the acquired company, as management expects the deal to double the size and capabilities of its nuclear business within the process flow technologies segment, according to the note.
The addition of the Druck brand will also expand Crane's aerospace and electronics segment's presence in ground-based test and calibration equipment, analysts noted.
Crane management projected that the Precision Sensors acquisition will drive long-term sales growth by 4% to 6%, with operating profit leveraging at almost 35%, according to the brokerage.
UBS reiterated its buy rating on the stock and increased its price target to $215 per share from $190 earlier.
Price: 186.13, Change: +0.09, Percent Change: +0.05
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.