Market Overview

UPDATE: J.P. Morgan Downgrades Sonoco Products Company to Neutral, Reiterates $37 PT

Related SON
Earnings Scheduled For October 16, 2014
S&P 500 Hits 2,000 Milestone As Bullish Momentum Continues

In a report published Friday, J.P. Morgan & Co. downgraded its rating on Sonoco Products Company (NYSE: SON) from Overweight to Neutral, but reiterated its $37.00 price target.

J.P. Morgan noted, “Following the full recovery in SON shares after the 3Q pre-announcement (+7%, group +3%) despite our $0.15 lower outlook for 2013E, we are downgrading shares from Overweight to Neutral. 3Q fundamentals in Industrial came in better than initially expected, but trends in Consumer worsened on both volumes/productivity and Tegrant integration execution slipped a bit. While FCF guidance was raised, the FCF yield on 2013E is now tracking at the lower end of the group (2013E 7.6%, group 8.1%). We think that the dividend is a solid support mechanism for the stock, limiting downside. However, upside catalysts appear limited in the near-term, outside of macro factors, considering we give full credit for productivity in 2013, even though recent execution has had hiccups.”

Sonoco Products Company closed on Thursday at $32.20.

Latest Ratings for SON

DateFirmActionFromTo
Oct 2014BarclaysMaintainsEqual-weight
Oct 2014JefferiesMaintainsHold
Oct 2014BarclaysMaintainsEqual-weight

View More Analyst Ratings for SON
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Downgrades Analyst Ratings

 

Related Articles (SON)

Around the Web, We're Loving...

Get Benzinga's Newsletters