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Investing.com - Citi has raised its price target on Crown Holdings (NYSE:CCK) to $129.00 from $119.00 while maintaining a Buy rating on the packaging company’s stock. The move comes as Crown Holdings trades near its 52-week high of $107, having delivered an impressive 30% return year-to-date.
The investment bank identified Crown Holdings as its top pick in the packaging sector, citing the company’s compelling valuation at 9.2 times next-twelve-months EBITDA compared to its 10-year average of 9.4 times, despite improved volume performance and an upgraded portfolio. With a market capitalization of $12.3 billion and an "GREAT" Financial Health Score according to InvestingPro, Crown Holdings shows strong fundamentals. Discover 12 additional key insights about Crown Holdings with an InvestingPro subscription.
Citi also expressed a positive outlook on Ardagh Metal Packaging (NYSE:AMBP) with a Buy rating, suggesting the company could continue to gain market share in North America with outsized growth in non-alcoholic beverage categories.
The firm maintains a Neutral stance on Ball Corporation (NYSE:BALL), preferring competitors with less exposure to the beer market, though it noted that restoring North American volume growth in line with the market could drive multiple improvement for Ball.
Following year-to-date outperformance, Citi expressed more caution on O-I Glass (NYSE:OI), citing uncertainty regarding European demand following U.S. tariff announcements, while acknowledging that Americas performance could exceed expectations.
In other recent news, Crown Holdings reported strong first-quarter results, surpassing expectations due to robust North American volumes and efficient execution. The company has accelerated the conversion of European substrates to cans, contributing to a positive outlook for fiscal year 2025. RBC Capital reaffirmed its Outperform rating on Crown Holdings, citing these strong performances and setting a price target of $115.00. Meanwhile, Crown Holdings announced plans to expand its production capabilities in Ponta Grossa, Brazil, by adding a third high-speed production line, which will increase capacity by 50% by the third quarter of 2026. Despite this expansion, the company maintains its free cash flow guidance for 2025 at $800 million. BofA reiterated its Buy rating, viewing the Brazil expansion as a strategic move to meet growing demand. Additionally, Crown Holdings revealed executive leadership changes, with Djalma Novaes, Jr. being promoted to Executive Vice President and Chief Operating Officer. Gary Gavin will take over as President of the Crown Americas Division, overseeing operations in several countries. In the Asia Pacific region, Dr. John Rost will succeed Carlos Baila as President, effective July 1, 2025, as Baila steps down for personal reasons.
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