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Fly News Breaks for April 11, 2018
Apr 11, 2018 | 07:04 EDT
Shares of Crown Holdings have underperformed both the packaging group and market year-to-date on concerns about the company's 2018 guidance and the Signode acquisition, JPMorgan analyst Tyler Langton tells investors in a research note. The analyst believes the recent weakness in the shares creates a "compelling buying opportunity." The Signode deal should be "highly accretive" to free cash flow and deliver returns that are several hundred basis points above Crown's cost of capital, Langton contends. He believes the company's 2019 free cash flow guidance is "very achievable" and the 10% free cash flow yield is "compelling." The analyst raised his price target for Crown Holdings shares to $69 from $68 and keeps an Overweight rating on the name.