Raymond James initiates Crown Holdings stock with Outperform rating

Published 15/10/2025, 21:56
Raymond James initiates Crown Holdings stock with Outperform rating

Investing.com - Raymond James initiated coverage of Crown Holdings (NYSE:CCK), the $10.4 billion packaging solutions provider, with an Outperform rating and a price target of $110.00 on Wednesday. According to InvestingPro data, the stock currently trades below its Fair Value, suggesting potential upside opportunity.

The research firm highlighted Crown’s superior beverage can margin profile and lower capital intensity compared to competitors, which it believes will lead to a more favorable free cash flow yield and return on invested capital profile than peers. This analysis aligns with Crown’s current impressive 10% free cash flow yield and 12% return on invested capital.

Raymond James expects Crown’s beverage can volume and margins to outperform peers in 2026, citing what it views as a more favorable category and customer mix, along with strong asset efficiency.

The firm noted potential upside to estimates if Asia and the Transit segment recover faster than anticipated, adding that the market currently places "little to no value" on the Transit segment.

Raymond James introduced adjusted earnings per share estimates of $7.33 for 2025, $7.97 for 2026, and $8.74 for 2027.

In other recent news, Crown Holdings, Inc. has announced the successful issuance of €500 million in senior unsecured notes through its subsidiary, Crown European Holdings S.A. These notes, due in 2031, carry an interest rate of 3.750% and are set to mature on September 30, 2031. The proceeds from this issuance are earmarked for redeeming Crown Holdings’ outstanding 2.875% senior notes due in February 2026, along with covering related fees and expenses. This financial maneuver was disclosed in a press release and a Form 8-K filing with the U.S. Securities and Exchange Commission. BNP Paribas is acting as the representative for the initial purchasers of this offering. Additionally, Citi has reiterated its Buy rating on Crown Holdings, maintaining a price target of $135.00. The analyst team at Citi continues to hold a positive outlook on the company. These developments highlight Crown Holdings’ strategic financial management and the continued confidence of financial analysts in its market performance.

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