DA Davidson reduced its rating on Sonoco Products SON and lowered its price target from $38 to $33.
DA Davidson commented, "[W]e note that Sonoco is a highly international company with significant exposure to consumer packaging. While exposure to international consumer goods is one of the elements of Sonoco's relatively stable earnings profile, Europe, a nervous consumer, secular headwinds in the paper industry (demand for cores) and a slow uptick in industrial activity will all crimp Sonoco's growth near term. Moreover, it is becoming apparent to us the pricing pass-through mechanism that protects Sonoco from rising input costs ultimately constrains margins as well – so true margin expansion must emanate from volume or productivity improvement."
Sonoco Products closed at $31.29 on Friday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in