UPDATE: Citigroup Reduces PT to $39 on Crane on FX Risk and Likelihood of Ongoing Operational Inefficiency
Citigroup reiterates its Neutral rating on Crane (NYSE: CR) and lowers its price target from $48 to $39.
Citigroup says, "We are reducing our target price from $48 to $39 to reflect the decrease in our small-cap target group multiple from 15.0x 2012 EPS to our new 13.0x group multiple on blended 2012/2013 EPS estimates. We are lowering our 2012/2013 EPS estimates by 10c/5c which assumes higher FX risk and potentially ongoing operational inefficiencies at certain European plants. We further assume that CR shares trade at the low-end of its historical relative P/E range of (25%) to (5%). Previously we assumed the shares traded to a (15%) discount."
CR closed at $35.85 on Wednesday.
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