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

Related SON
Earnings Scheduled For April 19, 2018
Benzinga's Top Upgrades, Downgrades For April 13, 2018

DA Davidson reduced its rating on Sonoco Products (NYSE: SON) from Buy to Neutral 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.

Latest Ratings for SON

Apr 2018UBSInitiates Coverage OnBuy
Apr 2018Bank of AmericaDowngradesBuyNeutral
Mar 2018Vertical ResearchUpgradesHoldBuy

View More Analyst Ratings for SON
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Posted-In: DA DavidsonAnalyst Color Downgrades Intraday Update Analyst Ratings


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