Analyst Philip Ng of Jefferies maintained a Buy rating on Crown Holdings (CCK – Research Report), with a price target of $125.00.
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Philip Ng has given his Buy rating due to a combination of factors influencing Crown Holdings’ financial outlook. The company is perceived as undervalued at its current trading multiples, specifically trading at 7.9 times the estimated 2025 EV/EBITDA and offering a 6.6% free cash flow yield. Despite facing some challenges, such as foreign exchange headwinds and product price index mismatches in North America, Crown Holdings has demonstrated steady growth prospects, particularly in the beverage can volumes.
Additionally, Crown Holdings is expected to maintain strong free cash flow generation, with plans to allocate approximately 50% for share buybacks in the first half of 2025 and use the remainder for debt reduction. The company’s strategic positioning, with less than 10% exposure to the mass beer market in North America, provides a favorable mix compared to its peers. Furthermore, the company is showing positive momentum in Europe with solid earnings growth. While there are potential risks, such as aluminum tariffs, Crown Holdings remains well-positioned with favorable contract negotiations and strategic joint ventures that signal future growth opportunities.
Ng covers the Consumer Cyclical sector, focusing on stocks such as International Paper Co, Ball, and Graphic Packaging. According to TipRanks, Ng has an average return of 9.4% and a 54.97% success rate on recommended stocks.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $108.00 price target.