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 (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
|Nov 2015||Deutsche Bank||Assumes||Hold|
|Nov 2015||Macquarie||Initiates Coverage on||Neutral|
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