Baird downgrades Crown Holdings stock rating to Neutral on valuation concerns

Published 17/07/2025, 08:28
Baird downgrades Crown Holdings stock rating to Neutral on valuation concerns

Investing.com - Baird downgraded Crown Holdings (NYSE:CCK) from Outperform to Neutral on Thursday, while maintaining a price target of $105.00. The packaging company, currently trading at $106.37 with a market capitalization of $12.24 billion, has shown remarkable strength with a 29.35% gain year-to-date.

The research firm cited Crown Holdings’ significant year-to-date outperformance as the primary reason for the rating change, noting that their previous investment thesis has largely materialized since their April 2024 upgrade. According to InvestingPro data, the stock is now trading near its 52-week high of $109.48, with analysts maintaining a bullish consensus.

Baird’s downgrade reflects their view that Crown’s volume improvement, cost reduction initiatives, and deleveraging efforts have already been recognized by the market, prompting the analysts to adjust their rating to "boost future optionality."

The firm’s unchanged $105 price target represents approximately 15 times their 2025 earnings per share estimate of $7.00 for the packaging company.

The rating change was announced as part of Baird’s broader second-quarter 2025 earnings preview for the sector.

In other recent news, Crown Holdings reported strong first-quarter results, surpassing expectations with robust North American volumes and effective execution. RBC Capital reaffirmed its Outperform rating on the company, citing these results and optimistic guidance for fiscal year 2025, setting a price target of $115.00. Citi also raised its price target for Crown Holdings to $129.00, maintaining a Buy rating due to the company’s improved volume performance and upgraded portfolio. In leadership changes, Crown Holdings announced that Gary Gavin will be promoted to President of the Americas Division, effective July 1, 2025, overseeing operations in Brazil, Colombia, Mexico, and North America. Additionally, Djalma Novaes, Jr. will advance to Executive Vice President and Chief Operating Officer, while Dr. John Rost will take over as President of the Asia Pacific operations. The company plans significant capital expenditures for fiscal year 2025, with a focus on enhancing capital return through potential dividend and buyback increases. Despite minimal anticipated tariff impacts, Crown Holdings projects a free cash flow of around $800 million for the year. These developments reflect Crown Holdings’ strategic initiatives and robust performance in the packaging sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.