Oil prices extend losses as traders downplay Russia sanction risks
On Monday, Truist Securities reiterated a Hold rating and maintained a $110.00 price target for Crown Holdings (NYSE: NYSE:CCK), with the stock trading near its 52-week high of $100.23. According to InvestingPro data, analyst targets range from $101 to $129, reflecting the market’s positive sentiment toward the company’s robust financial health. The decision follows the company’s announcement of plans to expand its beverage can plant in Ponta Grossa, Brazil with a new high-speed production line.
The addition of the third production line will increase the plant’s capacity by 1.2 billion units, totaling 3.6 billion units upon completion. This expansion aims to cater to both alcoholic and non-alcoholic beverage customers in southern Brazil, with production expected to commence in the third quarter of 2026. The company’s strong financial position, with an InvestingPro Financial Health Score of "GOOD," supports this strategic expansion.
Crown Holdings continues to project its 2025 adjusted free cash flow at approximately $800 million, with capital expenditures around $450 million. The company’s expansion in Brazil is supported by four consecutive quarters of volume growth in the region, including an 11% year-over-year increase in the first quarter.
Looking forward, Crown Holdings expects to outperform industry growth, projecting a 2-3% year-over-year increase in 2025. The company remains optimistic about the local can market, noting a growing penetration from a low base.
In other recent news, Crown Holdings, Inc. has announced the expansion of its Ponta Grossa beverage can plant in Brazil. The addition of a third high-speed production line is expected to increase the facility’s annual capacity from 2.4 billion to 3.6 billion cans by the third quarter of 2026. This expansion is part of Crown Holdings’ strategy to meet growing demand in the beverage sectors and strengthen its market position. Additionally, Crown Holdings plans to redeem $875 million in 4.750% Senior Notes due 2026, contingent upon the successful issuance of $700 million in new 5.875% Senior Notes due 2033. This financial maneuver is part of the company’s broader financial strategy, as outlined in its recent SEC filing. Moreover, Crown Holdings has disclosed its intention to offer $500 million in senior unsecured notes, aiming to use the proceeds to repay existing debt and cover related expenses. The offering will be conducted through a private placement, targeting institutional buyers and non-U.S. persons. These developments underscore Crown Holdings’ ongoing efforts to optimize its financial structure and expand its operational capacity.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.