Crane Shares Might Be Moving On Oil Rebound, But Fundamentals Haven't Changed - Crane (NYSE:CR)

While Canaccord Genuity, referring to

Crane Co.CR

, stated the potential drivers for growing interest in the stock are the increased contribution from the payment and merchandising technologies (PMT) and aerospace & electronics (A&E) segments, the firm still focuses on the near-term outlook for the fluid handling (FH) segment. However, the analysts think the recent increase in the stock price was driven by rising oil prices.

According to Canaccord, no major changes were made to their fundamental opinion for the fluid handling segment of the company. The analysts restate their Held rating on the stock with a price target of $60, citing uncertainty in the near-term outlook for oil prices and the outlook for the core valve business.

Canaccord still expects to see a stock re-rating, as investors gain better understanding of the company's payment and merchandising segment and value the fact that this segment combined with aerospace & electronics, constitutes an estimated 55 percent of the sales and more than 60 percent of operating income.

"Granted, the mix of profits will shift back to FH as that segment recovers, but we believe the higher than company segment margins for the PMT and A&E segments will translate to a higher valuation over the cycle." wrote Canaccord.

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