Solid Crown Holdings Earnings Drives 3Q Upside, Citigroup Reports

Citigroup reports that its Crown Holdings, Inc.

third-quarter results on balance were above its expectations. “The biggest positives were continued strong bev can volume growth (11%), driven by organic growth, capacity adds and market share ‘gains'; and tight corporate expense management, whereas N Am food fell short of our forecast,” Citigroup writes. “We continue to rate shares of CCK Buy ($32 target) based on solid global industry fundamentals, and the company's ability to leverage this via strong FCF conversion and ROIC improvement.” Citigroup adds that its upbeat view is supported by management's track record of efficient capital allocation. Crown Holdings closed Monday at $29.74.