Crane downgraded to Neutral into NXT separation at UBS

UBS downgraded Crane to Neutral from Buy with a price target of $120, down from $132. The analyst thinks Crane’s path to unlocking further shareholder value is "likely bumpier and slower in the near term." The firm sees a risk of "relatively subdued early standalone valuation" for NXT due to lack of clear comps and target investors, which could potentially bring a more attractive entry point post separation. UBS thinks a further multiple re-rating of Crane shares will largely hinge on future acquisition execution at both companies, as well as evidence of sustained outgrowth and margin improvement.