UPDATE: Jefferies Raises PT to $35 on Sonoco Products

In a published research note, Jefferies maintains its Hold rating on Sonoco Products Company

and raises its price target to $35 from a previous $31.25 per share as it raised EPS estimates on Tegrant acquisition and lower OCC prices. According to Jefferies, “Now that SON has closed on the Tegrant acquisition, we are raising our estimates for 2012, assuming $0.06 of EPS accretion ($0.04 in 2013) and topline approaching $5 bil next year. We are keeping our 4Q11 EPS intact, with lower OCC prices being offset by the dilution (inventory step up) of the transaction. … . Given the sharp drop off in OCC prices the last two months, we are now assuming operating margins in tubes & core are flat YOY in 2012, with the cost relief being partially offset by lower volumes.” SON closed Wednesday's session at $31.29 a share.