Crown Holdings (CCK) is expected to see slower earnings per share growth in 2026 due to inflation pressures and startup costs from new capacity expansions, leaving little room for stock re-rating or upside from earnings beats, UBS Securities said in a Monday research note.

Inflation is expected to remain a persistent headwind in 2026, particularly in the North America segment, which will absorb most of the impact.

The company's solid 2% volume growth in 2026 is expected to translate into only mid-single-digit EPS growth, as new capacity expansions in Brazil, Greece, and Spain come with lower incremental margins.

Startup costs related to these expansions could further pressure margins in H2. The brokerage added that while tight capacity may limit higher volumes, there could be potential for improved pricing over time.

For 2026 and 2027, UBS lowered adjusted EPS growth estimates by 2% and 4%, projecting roughly 6% growth on average over the next two years.

The firm downgraded the stock to neutral from buy and retained its price target of $126 per share.

Shares of Crown Holdings were down more than 2% in recent Monday trading.

Price: 110.15, Change: -2.73, Percent Change: -2.42