UPDATE: Citigroup Lowers PT on Crown Holdings on Lowered 3Q13 Guidance
In a report published Wednesday, Citigroup analyst Anthony Pettinari reiterated a Buy rating on Crown Holdings (NYSE: CCK), but lowered the price target from $52.00 to $50.00.
In the report, Citigroup noted, “Today after market close CCK lowered its 3Q '13 guidance to $1.05-$1.10 from $1.15-$1.25 ($1.21 cons) citing weak demand in European food cans and North American bev cans. The company also revised its FY FCF guidance to “approximately $500mm” from “at least $500mm.” CCK did not explicitly revise FY EPS guidance ($3.20-$3.40), possibly reflecting the acceleration of repurchases (~5% of shares outstanding YTD). While the reduced 3Q outlook is not completely unexpected given soft industry data (summer CSD vols -3.9% Y/Y) and cautious commentary from peers, we expect the stock to come under pressure tomorrow.”
Crown Holdings closed on Tuesday at $43.47.
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