What Analysts Are Saying About Sonoco Prods Stock

Analysts' ratings for Sonoco Prods SON over the last quarter vary from bullish to bearish, as provided by 6 analysts.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have recently evaluated Sonoco Prods and provided 12-month price targets. The average target is $57.67, accompanied by a high estimate of $63.00 and a low estimate of $52.00. Observing a downward trend, the current average is 1.25% lower than the prior average price target of $58.40.

Breaking Down Analyst Ratings: A Detailed Examination

A comprehensive examination of how financial experts perceive Sonoco Prods is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Sonoco Prods. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sonoco Prods compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Sonoco Prods's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Sonoco Prods's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Sonoco Prods analyst ratings.

Discovering Sonoco Prods: A Closer Look

Over its 100-year-plus history, Sonoco Products has steadily assembled a diverse portfolio of industrial and consumer packaging product offerings such as flexible and rigid plastics, reels and spools, pallets, and composite cans. The company serves a variety of consumer and industrial end markets throughout North America. Sonoco has raised its dividend each year for more than 40 years.

Sonoco Prods's Economic Impact: An Analysis

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Sonoco Prods's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -4.8%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Materials sector.

Net Margin: Sonoco Prods's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 5.59%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Sonoco Prods's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.74%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Sonoco Prods's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.27%, the company may face hurdles in achieving optimal financial returns.

Debt Management: With a below-average debt-to-equity ratio of 1.35, Sonoco Prods adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.