Crane NXT (CXT) has fallen about 25% in the past year as the cost of acquiring multiple companies at the same time and sales of some legacy hardware businesses slowed. CXT shares closed at $48.42 on September 23, well below the 52-week high of $69.
Then Jefferies stepped in. On September 22, the company launched reports of Crane NXT Buy rating and a Target price $60saying the company was “undervalued” by the market. Shares rose 6.4% intraday to close at $48.68.
The call has investors wondering if Crane NXT has actually rebuilt itself into a bigger company than most people realize.
Jefferies’ view on Crane NXT stock
The analyst on this call is Stephen Volkmann, who joined Jefferies in December 2008 and has covered industrial stocks for more than three decades. TipRanks rates him as a 4.94-star analyst with a 67.63% success rate on 56 stocks and an average return of nearly 19.6% per rating. This record gives his views real credibility.
Workman’s main point is that Crane NXT has grown far beyond the old money-printing business that most investors still associate with it.
“Crane NXT combines a 150-year legacy banknote printing franchise with proprietary authentication technology, advanced manufacturing capabilities and a growing presence in high-growth industrial and security markets,” he wrote in a note to clients, according to CNBC.
He also emphasized how difficult it would be for competitors to replicate what Crane NXT does.
“CXT benefits from a high barrier to entry, which we believe investors underestimate,” Volkmann said.
His $60 target means 31% increase Starting from Monday’s close $45.77reports Investing.com.
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Crane NXT Where the real money is
Crane NXT was spun off from Crane Holdings in 2023 and currently operates two main lines of business. The first device uses tiny optical features to print high-security banknotes for governments, including U.S. dollars, which make the notes extremely difficult to counterfeit.
The second project is building sensors and inspection systems to help food companies, pharmaceutical manufacturers and retailers verify the authenticity and safety of their products.
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Over the past three years, the company’s management has added to that portfolio with several large purchases. Crane NXT spent £300 million to acquire De La Rue Authentication Solutions in May 2025, which it then merged with OpSec Security.
Additionally, in April 2026, Crane NXT completed the acquisition of Antares Vision, an Italian company that tracks products through the supply chains of pharmaceutical manufacturers and food and beverage brands.
These transactions approximately double the total market volume into which Crane NXT can be sold, from Approximately US$7 billion arrive Approximately US$13 billion. The company now has growth paths in areas such as drug tracking and digital brand protection, all of which are expanding as regulation and demand for product authenticity increase.
Recent results provide some support for bull case
The company’s second-quarter 2026 numbers provide real-world evidence that the strategy is working. According to the “Globe and Mail” report, sales reached US$493.2 million, an increase of 22% year-on-year, and adjusted earnings per share increased by 13% to US$1.10, exceeding Wall Street expectations of US$1.04.
Chief Executive Aaron Saak, who has led the company since the separation in 2023, was positive about the company’s performance.
“We delivered strong operating results in the second quarter, delivering on our value creation priorities of accelerating growth, solidifying our leadership position and driving operational excellence,” Thacker said, according to the SEC filing.
Subsequently, the company’s management raised its full-year adjusted profit guidance to a range of $4.22 to $4.42 per share.
The broader financial picture is also what makes the stock attractive to value investors. Crane NXT converts nearly all of its profits into cash and has a free cash flow yield of 9% at recent prices. Its price-to-earnings ratio is only 11.4 times next year’s expected price-to-earnings ratio. That’s significantly cheaper than most similarly sized industrial technology companies.
What investors should pay attention to next
Jefferies isn’t the only bull on the stock. 5 out of 6 analysts who follow Crane NXT have rated it purchasethe average target price is $66.50.
Still, the bull market has conditions. The Antares Vision deal closed only about five months ago, and Crane NXT’s management is still working to cut costs and consolidate operations. If the integration takes longer than expected, or sales of the company’s payments hardware business continue to slow, the stock could remain unchanged for longer.
The next big test has begun November 4when Crane NXT is expected to announce its third quarter 2026 results. Investors want to see that the company’s growing order book is converting into real revenue and that acquisition costs are decreasing.
In addition, the Federal Reserve’s order to print a new $100 note in 2027 may increase demand for Crane’s optical security features.
Jefferies believes the market has mispriced a company that has been quietly rebuilding itself. The company’s financials also support this view, but returns will depend on how well its management executes in the coming quarters.
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