Analyst Expectations For Sonoco Prods's Future

During the last three months, 6 analysts shared their evaluations of Sonoco Prods SON, revealing diverse outlooks from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Sonoco Prods and provided 12-month price targets. The average target is $61.17, accompanied by a high estimate of $71.00 and a low estimate of $50.00. Experiencing a 0.7% decline, the current average is now lower than the previous average price target of $61.60.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of Sonoco Prods's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sonoco Prods. This information offers a snapshot of how analysts perceive 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 gauge the dynamics of price targets, providing estimates for the future value of Sonoco Prods's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Sonoco Prods's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Sonoco Prods analyst ratings.

All You Need to Know About Sonoco Prods

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.

Unraveling the Financial Story of Sonoco Prods

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Sonoco Prods's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -18.65%. This indicates a decrease in the company's top-line earnings. When compared to others in the Materials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -3.15%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of -1.8%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Sonoco Prods's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -0.4% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Sonoco Prods's debt-to-equity ratio stands notably higher than the industry average, reaching 3.19. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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