Ardagh Metal Packaging's (AMBP) Q1 earnings "beat" and reiterated 2026 outlook point to resilient demand, pricing power and "limited" inflation impact across the beverage can sector, providing positive read-throughs for Ball (BALL) and Crown (CCK), RBC Capital Markets said in a report emailed Monday.

The firm said "strong" energy drink and non-alcoholic beverage trends, along with potential tailwinds from global events such as the World Cup, could support low-single-digit volume growth in 2026, while companies are expected to pass through "higher aluminum" costs.

The company's Q1 results beat estimates by about 10%, driven by "input cost recovery" and "gains from revaluation of hedges in Europe," though global shipments were slightly down, reflecting North America weakness, the report said.

Looking ahead, the firm raised earnings before interest, taxes, depreciation, and amortization estimates for Q2, 2026 and 2027 to $215 million, $765 million and $790 million, respectively, citing solid volume growth and strength in Europe and Brazil, though second-half performance could be pressured by rising raw material costs and "European freight hedge reversal," according to the report.

RBC has a sector perform rating on Ardagh Metal Packaging with a price target of $5.