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

In a report published Friday, J.P. Morgan & Co. downgraded its rating on Sonoco Products Company

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.