|Bid||53.02 x 900|
|Ask||55.98 x 800|
|Day's Range||52.59 - 53.92|
|52 Week Range||37.30 - 62.77|
|Beta (5Y Monthly)||0.78|
|PE Ratio (TTM)||20.39|
|Earnings Date||Oct 22, 2020|
|Forward Dividend & Yield||1.72 (3.23%)|
|Ex-Dividend Date||Nov 09, 2020|
|1y Target Est||57.22|
Global packaging solutions company Sonoco Products Co (NYSE: SON) stands to benefit from near-term catalysts in 2021, but it's hard to justify buying the stock at today's levels, according to BofA Securities.The Sonoco Products Analyst: George Staphos downgraded Sonoco from Buy to Neutral with a price target lowered from $61 to $57.The Sonoco Products Thesis: Sonoco's recent price increase efforts and direct exposure to COVID-19 vaccination shipments are "some things to look forward to" in 2020 and 2021, Staphos said in the Friday downgrade note.Yet the stock's rebound from around $40 per share in mid-March to the mid-$50s implies there are cheaper stocks available with similar catalysts, the analyst said. Sonoco deserves credit for doing well on productivity, but the paper and industrial converted products business is unlikely to show positive earnings comps until the second quarter of 2021, he said.Related Link: Sonoco Products: Q3 Earnings InsightsSonoco's sale of its European contract packaging will reduce EPS by 10 cents to 15 cents for 2021 at a time when capex will increase by $100 million and pension funding will come in at $150 million, Staphos said.Free cash flow for 2021 is likely to come in below $50 million, but there are reasons to be positive in 2022, the analyst said.Most notably, management is heavily investing in transforming its Hartsville 10 corrugating medium machine to become North America's largest and lowest-cost uncoated recycled board machine in 2022, according to BofA.SON Price Action: Shares of Sonoco were trading down 0.86% at $53.03 at last check Friday.Latest Ratings for SON DateFirmActionFromTo Oct 2020Seaport GlobalInitiates Coverage OnBuy Oct 2020BMO CapitalMaintainsOutperform Sep 2020UBSInitiates Coverage OnNeutral View More Analyst Ratings for SON View the Latest Analyst Ratings See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Bob Iger Joins Board Of Animal-Free Dairy Maker Company * The Street Reacts To Chipotle's Q3 Earnings: Costs Heading 'In The Right Direction'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
SON earnings call for the period ending September 27, 2020.
Sonoco (SON) delivered earnings and revenue surprises of 6.17% and 0.05%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?