At Extreme Investor Network, we pride ourselves on uncovering hidden gems in the investment world that others may overlook. One such opportunity that we believe is flying under the radar is Crane NXT. This innovative company specializes in micro-optic securities to protect products against counterfeits, as well as differentiate legitimate currency bills from fake ones.
Analyst Michael Halloran of Baird recently initiated coverage of Crane NXT with an outperform rating and a $77 price target, representing a 38.5% upside potential from the current price. Despite shedding 2.2% earlier this year, Halloran sees a bright future for Crane NXT, citing an anticipated end market inflection that could drive differentiated earnings growth in 2026 and beyond.
What sets Crane NXT apart is its best-in-class gross margin and EBITDA margin, yet it continues to trade at a discount to its financial profile. Halloran believes that this undervaluation presents a unique opportunity for investors, as the company has significant capital optionality and aspirations that could drive future growth.
Additionally, Crane NXT boasts strong customer relationships that result in high recurring revenue, further bolstering its financial outlook. With 5 out of 6 analysts covering the stock giving it a buy or strong buy rating, it’s clear that confidence in the company is high.
At Extreme Investor Network, we see the potential for Crane NXT to emerge as a standout performer in the coming years, with low-to-mid teen+ EBITDA multiples on the horizon. We believe that with strong execution, increased investor discovery, and potential M&A opportunities, Crane NXT has the makings of a compelling investment for those seeking long-term growth. Stay ahead of the curve and consider adding Crane NXT to your portfolio today.