ARD - Can makers cut at BMO on Canpack's U.S. expansion plan

Beverage can makers Ball ([[BLL]] -4.0%), Crown ([[CCK]] -5.6%) and Ardagh ([[ARD]] -4.0%) all sink deeply into the red following yesterday's news of Canpack's U.S. expansion plan.BMO Capital's Mark Wilde says he is pulling back from the sector because of the supply expansion concerns, downgrading the three stocks to Market Perform from Outperform and cutting price targets for Ball to $87 from $107, Crown to $110 from $125, and Ardagh to $26 from $29.Can-Pack's aggressive expansion into the U.S. "raises fresh questions and suggests that heady expansion plans by the incumbents could be challenged," Wilde writes.But Jefferies analyst Philip Ng thinks the news will not prove a "game changer" for the sector, noting the plant is not expected to ramp up until late 2022, and "the market should remain sold out through 2022 and remain tight in 2023."Earlier this month, Ball reported better than forecast Q1 earnings and revenues.

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Can makers cut at BMO on Canpack's U.S. expansion plan