Wells Fargo Starts Crown Holdings (CCK) at Outperform; Capacity Expansion Story Begins To Uncork Cash

Wells Fargo initiates coverage on Crown Holdings (NYSE: CCK) with an Outperform. PT range $38-$40.

Wells analyst says, "We believe CCK maintains numerous avenues for earnings growth and cash flow redeployment over the next 12-18 months including: 1) expanding its global beverage can capacity by roughly 12% in 2012 (mostly pre-sold), and 6% in 2013 (after adding 8% and 7% in 2010 and 2011, respectively); 2) incremental pricing and annual productivity actions; and 3) significant share repurchase activity. Additionally, we view the current 2012 free cash flow yield of 10.0% favorably."

For an analyst ratings summary and ratings history on Crown Holdings click here. For more ratings news on Crown Holdings click here.

Shares of Crown Holdings closed at $34.76 yesterday, with a 52 week range of $28.68-$41.58.

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