UPDATE: JPMorgan Downgrades Crown Holdings (CCK) to Neutral
JPMorgan analyst Jeffrey J. Zekauskas downgraded Crown Holdings (NYSE: CCK) from Overweight to Neutral with a price target of $71.00 (from $115.00).
The analyst comments "We reduced our rating on Crown Holdings from Overweight to Neutral. The allure of Crown shares is now probably more its relative value. The shares are lower by (30%) over the past year versus a (15%) decrease in the S&P, and the stock has decreased 36% ytd versus a (19%) lower S&P. The shares are now trading at about 8x estimated 2023 EBITDA down from roughly 10.0x. We think that it is difficult for Crown to capture an enhanced trading multiple with little free cash flow generation likely for 2022 or 2023, earnings headwinds from elevated interest and pension values, and slow and uncertain EBITDA growth prospects. We do not think it is reasonable to Underweight Crown given its recent loss of value and likely stabilization of earnings in 2023."
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 $70.69 yesterday.