Crown Holdings (CCK) PT Lowered to $100 at Truist Securities

Truist Securities analyst Michael Roxland lowered the price target on Crown Holdings (NYSE: CCK) to $100.00 (from $117.00) while maintaining a Buy rating.

The analyst comments "We maintain our Buy rating on CCK and lower our PT to $100 from $117 given slightly lower multiples and a weaker growth outlook than we initially expected. While CCK guided to 2024 EPS of $5.80-6.20 (~+2.4% y/y), this includes a ~$0.10/share net impact from lower depreciation expense given a change to estimated useful lives. While the re-estimation is expected to lower depreciation expense by ~$48mn in 2024, additional depreciation from CCK’s new plants in Mesquite, NV, Martinsville, VA, and Peterborough, UK, should offset ~$32mn of the benefit. As such, the company is guiding 2024 depreciation expense to $320mn. That said, CCK expects overall segment income to be in-line with 2023 as better growth in its beverage and Transit segments, and ~$15mn in restructuring-related benefits (repeats in 2025), offset a combined ~$80mn headwind from weaker canmaking equipment, aerosols, and Mexican glass. On an EBITDA basis, the company expects a ~$10-15mn decline vs. 2023 EBITDA of ~$1.88bn. In addition, net leverage is expected to decline to the lower end of CCK’s targeted 3.0-3.5x range (vs 3.3x in 4Q)."

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