RBC Capital analysts raised their price target on Crown Holdings, Inc. (NYSE:CCK) to $122 from $120, noting they remain favorable on the company despite the recent weakness in bev can reflected by peers announcing capacity rationalization and project delays.
The analysts view the company’s bev can category exposure as more favorable vs. peers, and therefore believe it is less exposed to the recent bev can volume declines.
Overall, the analysts expect the company to achieve its free cash flow guidance of approximately $400 million in fiscal 2022 assuming around $1 billion of capex (potentially lower due to supply chain headwinds) and then free cash flow generation should inflect higher in 2024/2025 post growth projects.