Analyst Note
| Krzysztof Smalec, CFA |Narrow-moat rated Crane delivered stellar third-quarter results, as its revenue of $834 million and adjusted EPS of $1.89 both crushed FactSet consensus estimates ($767 million and $1.36, respectively). We’ve raised our fair value estimate for Crane to $115 from $111, which reflects the firm’s outperformance and our more optimistic near-term projections. The stock surged by around 10% after the earnings release, but we continue to see Crane as modestly undervalued, with shares trading roughly 11% below our updated fair value estimate.