Narrative Update: Sonoco Products Analyst Price Target Adjustment
The analyst price target for Sonoco Products has been reduced slightly from $57.40 to $56.20. Analysts cite marginal declines in both revenue growth and profit margin projections as the reason for this adjustment.
What's in the News
- Sonoco Products completed the repurchase of 3,286,255 shares, representing 3.3% of shares for $212.03 million under the buyback program announced in April 2021. (Key Developments)
- No shares were repurchased between April 1, 2025 and June 29, 2025 under the current tranche, with $0 million spent. (Key Developments)
- The company announced a $30 million capital investment to expand its production capacity in the adhesives and sealants market by 100 million additional units annually. (Key Developments)
- The expansion will involve enhancing current lines and installing new ones across three strategically located facilities. This aims to increase supply security and support customer needs. (Key Developments)
Valuation Changes
- The consensus analyst price target has decreased slightly from $57.40 to $56.20.
- The discount rate has risen moderately from 8.49% to 9.04%.
- The revenue growth projection has edged down marginally from 9.55% to 9.51%.
- The net profit margin estimate has declined very slightly from 7.02% to 7.00%.
- The future P/E ratio forecast has decreased a fraction from 12.41x to 12.39x.
Disclaimer
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