Analysts Bullish on Crown Holdings After Strong Q3 Results

Crown Holdings, Inc. (CCK) has reported better-than-expected results for the third quarter of 2021 on higher beverage can and transit packaging sales volumes. The company designs, manufactures and sells packaging products for consumer goods. 

Adjusted earnings rose 3.6% year-over-year to $2.03 per share and topped the Street estimate of $1.95 per share. Total revenue surged 17.3% to $2.92 billion and outpaced the consensus estimate of $2.91 billion. (See Crown Holdings stock charts on TipRanks)

Revenue from Americas Beverage segment (39% of net sales) increased 19.9% to $1.15 billion, while European Beverage revenue rose 22.7%. Transit Packaging revenue was up 26% to $644 million.

The President and CEO of Crown Holdings, Timothy J. Donahue, said, “To support the significant increase of current and future requirements, Crown is implementing several beverage can capacity expansion projects globally including both new facilities and additional lines in existing plants. Importantly, this new capacity, underpinned by multi-year supply agreements, will meet the needs of a diverse and balanced customer portfolio encompassing a wide array of both existing and new alcoholic and non-alcoholic beverage segments.”

Looking forward, Crown Holdings expects to report fourth-quarter adjusted earnings in the range of $1.50 per share to $1.55 per share against the consensus estimate of $1.52 per share. The company forecasts 2021 adjusted earnings in the range of $7.50 per share to $7.55 per share.

On October 25, Mizuho Securities analyst Chris Parkinson maintained a Buy rating on the stock with a price target of $129. The price target implies 29.4% upside potential. (See Top Smart Score Stocks on TipRanks)

“We view this release as a positive as CCK is demonstrating its ability to navigate a difficult environment, positioning itself for a “full” rebound and surprise,” the analyst said.

Overall, the Street is optimistic about the stock and has a Strong Buy consensus rating based on 7 unanimous Buys. The average Crown Holdings price target of $138 implies 38% upside potential to current levels.

According to TipRanks’ Stock Investors tool, investors currently have a Very Positive stance on Crown Holdings, with 6.9% of investors on TipRanks increasing their exposure to CCK stock over the past 30 days.

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