Jefferies Has Buy On Crown Holdings (CCK)

Jefferies & Co. is out with a research report on Crown Holdings CCK and it has a Buy rating and a $49 price target on shares. In a note to clients, Jefferies & Co. writes, "While some investors are concerned the beverage can industry could overbuild in the emerging markets, Crown (Rexam as well) is showing good discipline and has scaled back some of its projects. In fact, rather than adding 1 bil cans in Belem, Brazil, it lowered the capacity to 700 mil cans. For its Hanoi, Vietnam expansion project, Crown is now adding 400 mil cans rather than 750 mil cans. We believe this type of discipline should help maintain the favorable economics in the emerging markets." Shares of CCK lost 60 cents yesterday to close at $33.20.