Truist upgrades Crown Holdings on 2026 growth outlook after share sell-off

Published 05/09/2025, 13:32
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Investing.com -- Truist Securities upgraded Crown Holdings to Buy, saying the recent share decline creates an attractive entry point as the packaging company’s North America growth prospects improve in 2026.

Crown shares have fallen nearly 8% since last week, even as the S&P 500 was flat, without any specific company-related news.

The stock now trades at about 8.1 times projected 2026 earnings before interest, tax, depreciation and amortization, below its five-year average of 9.5 times.

Analysts said some of the pressure reflects concerns around beverage demand, with consumer goods makers warning of softer beer volumes.

Constellation Brands this week cut its fiscal 2026 beer sales forecast to a 2-4% decline, while Heineken flagged persistent weakness in Europe after years of price increases.

Truist noted Crown’s business is less exposed to beer, with more than half of its North America mix tied to carbonated soft drinks, sparkling water, energy drinks and craft cocktails. Even so, it expects modest headwinds in the third quarter in both North America and Brazil, where tariffs and weather have weighed on demand.

Despite this, Truist said Crown should still meet its third-quarter profit guidance of $1.95-$2.05 per share and its full-year target of $7.10-$7.50.

The company has exceeded its own guidance in the first two quarters, suggesting a conservative outlook that factors in consumer weakness and tariff risks.

Truist said new business wins in North America could help Crown grow faster than the market in 2026, lifting volumes and supporting the shares.

Brokerage kept its price target at $118.

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