Slow growth and high Debt weigh on Sonoco Products Company

DA Davidson on Friday downgraded Sonoco Products Company

from Neutral to Underperform after the paper and forest product company reported fourth quarter earnings. DA Davidson raised their price target from $40 to $44. Sonoco issued earnings of $0.66 per share compared to $0.58 from the fourth quarter of last year. However concerns over the rising US dollar have caused analysts at DA Davidson to cut their 2015 earnings estimate for Sonoco from $2.80 to $2.69. Steven Chercover, an analyst at DA Davidson calls 2015 a year of digestion for Sonoco saying, "We suspect that Sonoco's near term focus will be on the integration of the $383 million purchase of Weidenhammer, which was the second largest acquisition in Sonoco's 100+ year history." However the purchase took the company's debt to 45.1 percent, greatly increasing the risk of the company. Sonoco Products Company has traded at $46.96.