Ball (BALL) remains positioned to manage near-term cost headwinds tied to Iran-related disruptions through hedging and regional aluminum sourcing, RBC Capital Markets said in a note Thursday.

The company sources aluminum regionally across North America, EMEA and South America, limiting direct exposure to a potential Strait of Hormuz disruption, RBC analysts noted.

On energy costs, RBC said Ball is more than 90% hedged for fiscal 2026 and remains highly hedged over a multi-year period.

The firm also said contract structures in North America and Europe allow cost increases to pass through within one to three months, though inflation over 10% could take over a year to recover.

RBC maintained its outperform rating on Ball and lowered its price target to $71 from $74.

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