Sonoco Products (SON) Upgraded to Buy by Zacks Investment Research
Sonoco Products (NYSE:SON) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $56.00 target price on the industrial products company’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 11.89% from the company’s current price.
According to Zacks, “For 2017, Sonoco's earnings per share guidance range is at $2.75-$2.81, the mid-point of which reflects year-over-year growth of 2.2%. Sonoco estimates that its adjusted earnings per share for 2018 will be in the range of $3.00-$3.10. The company remains committed to executing its ‘Grow and Optimize’ strategy, which is focused on targeted growth of Consumer Packaging and Protective Solutions businesses along with optimizing Industrial-focused businesses. The acquisitions of Clear Lam Packaging and Peninsula Packaging significantly expand Sonoco’s flexible packaging and thermoforming plastics capabilities. Additionally, it remains focused on accelerating organic growth by introducing new commercial products, improving manufacturing productivity and gaining market share.”
Several other analysts have also weighed in on SON. Barclays lifted their target price on shares of Sonoco Products from $48.00 to $49.00 and gave the company an “underweight” rating in a research report on Friday, October 20th. KeyCorp reiterated a “hold” rating on shares of Sonoco Products in a research report on Thursday, October 19th. Finally, Robert W. Baird reiterated a “buy” rating and set a $60.00 target price on shares of Sonoco Products in a research report on Friday, November 10th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and three have issued a buy rating to the company. The company presently has a consensus rating of “Hold” and a consensus target price of $53.43.
Institutional investors have recently modified their holdings of the company. Brookmont Capital Management boosted its position in Sonoco Products by 53.9% in the fourth quarter. Brookmont Capital Management now owns 52,944 shares of the industrial products company’s stock valued at $2,813,000 after buying an additional 18,538 shares in the last quarter. RiverPoint Capital Management LLC acquired a new position in Sonoco Products in the fourth quarter valued at about $643,000. Bbva Compass Bancshares Inc. acquired a new position in Sonoco Products in the fourth quarter valued at about $226,000. Financial Counselors Inc. boosted its position in Sonoco Products by 7.8% in the fourth quarter. Financial Counselors Inc. now owns 121,447 shares of the industrial products company’s stock valued at $6,454,000 after buying an additional 8,800 shares in the last quarter. Finally, Quadrature Capital Ltd boosted its position in Sonoco Products by 37.0% in the fourth quarter. Quadrature Capital Ltd now owns 15,121 shares of the industrial products company’s stock valued at $803,000 after buying an additional 4,083 shares in the last quarter. Institutional investors and hedge funds own 71.72% of the company’s stock.
About Sonoco Products
Sonoco Products Company is engaged in manufacturing of industrial and consumer packaging products, and providing packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Its Consumer Packaging segment’s products and services include round composite cans, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, cups and trays, and printed flexible packaging and global brand management.
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