UPDATE: DA Davidson Downgrades Sonoco Products to Neutral on Uncertain Outlook

DA Davidson reduced its rating on Sonoco Products

and lowered its price target from $38 to $33. DA Davidson commented, "[W]e note that Sonoco is a highly international company with significant exposure to consumer packaging. While exposure to international consumer goods is one of the elements of Sonoco's relatively stable earnings profile, Europe, a nervous consumer, secular headwinds in the paper industry (demand for cores) and a slow uptick in industrial activity will all crimp Sonoco's growth near term. Moreover, it is becoming apparent to us the pricing pass-through mechanism that protects Sonoco from rising input costs ultimately constrains margins as well – so true margin expansion must emanate from volume or productivity improvement." Sonoco Products closed at $31.29 on Friday.