On Tuesday, Redburn-Atlantic maintained its Buy rating on shares of Craneware Plc. (CRW:LN) (OTC: CRWRY) and increased its price target to £54.50, up from the previous £53.20. The revision followed the company's first half (H1) 2025 results, which led to a 5% decline in Craneware's share price.
The analyst pointed out that the negative market reaction seemed excessive given that the results were in line with expectations and most of the operational details had been disclosed previously in a trading update on September 27.
The analyst highlighted that while the H1 presentation did not reveal significant new information, it provided insights into the company's planning progress, new business wins, and capital investments.
After reviewing these details and updating their financial model, Redburn-Atlantic found that their estimates for Craneware remained largely unchanged. The firm believes that the company's guidance for the second half of the year (H2) is conservative and suggests that the recent drop in share price could represent a good opportunity for investors to buy.
Redburn-Atlantic's report also mentioned that they had updated their forecasts for Craneware, which led to the slight increase in the price target. The assessment concluded that despite the post-results dip in stock value, the outlook for the company remains positive. The analyst's comments were optimistic about Craneware's market position and future performance, reinforcing the Buy rating and the new price target.
In summary, the updated analysis by Redburn-Atlantic suggests confidence in Craneware's strategy and market performance, despite the immediate negative reaction to its H1 2025 results. The firm's new price target reflects an expectation of growth and a belief in the stock's potential for investors.
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