Truist Cuts Sonoco Price Target to $60 Amid Mixed Outlook

Truist Securities analyst Michael Roxland has lowered his price target for Sonoco Products (NYSE:SON) to $60 from $68, citing a mix of positive and negative factors that have emerged in recent months. The analyst maintains a Strong Buy rating on the stock, indicating a long-term bullish outlook despite the price target reduction. This article explores the reasons behind the price target change and its potential implications for Sonoco's stock performance and investor sentiment.

Sonoco Products, a global leader in high-value sustainable packaging, has faced a challenging quarter with moving parts due to mergers and acquisitions, underperformance of Eviosys, and the delayed realization of synergies. These factors have contributed to a 4% decline in Sonoco's share price on the day of the announcement regarding the strategic review of Thermosafe. Despite these setbacks, Raymond James analyst Matt Roberts noted that Sonoco's guidance for 2025 was above their prior expectations, suggesting that the company's outlook is improving.

Truist Securities' price target reduction reflects a more cautious stance on Sonoco's near-term prospects, as the analyst has become more concerned about the integration and performance of the acquired business, Eviosys. The delayed realization of synergies and the prolonged market uncertainty surrounding the strategic review of Thermosafe have also contributed to the price target reduction. Additionally, Sonoco's recent revenue shortfall and cautious outlook for 2025 have raised concerns among investors.

However, it is essential to consider the broader analyst consensus and Sonoco's current stock price when evaluating the potential implications of the price target change. The average price target for Sonoco stock remains at $60.17, with a low estimate of $50 and a high estimate of $71. This indicates that other analysts still have a relatively positive outlook on the company's stock performance. Moreover, Sonoco's stock is currently trading at $46.38, near its 52-week low of $44.35, which is below the revised price target of $60.



In conclusion, Truist Securities' price target reduction for Sonoco Products reflects a more cautious outlook on the company's near-term prospects, driven by concerns about Eviosys' underperformance, the delayed realization of synergies, and the prolonged market uncertainty surrounding the strategic review of Thermosafe. However, the broader analyst consensus and Sonoco's current stock price suggest that the implications for Sonoco's stock performance and investor sentiment may be limited. Investors should continue to monitor the company's fundamentals and the broader market conditions to make informed decisions about their investments.