UBS Starts Sonoco Products (SON) at Neutral

UBS analyst Anojja Shah initiates coverage on Sonoco Products (NYSE: SON) with a Neutral rating and a price target of $48.00.

The analyst comments: "We initiate coverage of SON with a Neutral rating and $48 price target. Our view on SON is balanced – we like the transition of the portfolio to fewer larger businesses with scale advantages, but we have questions around growth and EBITDA of the new portfolio, particularly at the new European food can business. 2025 leverage (~4.0x) is higher than the company has maintained in the past. However, this is balanced by an attractive 2026 FCF yield (~11%). Our 2025 EBITDA estimates are similar to consensus (+2%). We will be monitoring for interim milestones on synergy achievement ($100M over 24 months, we model $80M), EBITDA growth and debt paydown, as SON adjusts to the new portfolio structure."

For an analyst ratings summary and ratings history on Sonoco Products click here. For more ratings news on Sonoco Products click here.

Shares of Sonoco Products closed at $45.57 yesterday.

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