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SON: Future Packaging Reorganization And Completed Buybacks Will Support Earnings Momentum

Future Value Will Arise From Packaging Expansion And Improving Profit Margins

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SON
AnalystConsensusTarget
Not Invested
Published 30 Aug 2024

Update shared on 10 Dec 2025

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-12.3%
7D
2.1%

Analysts have modestly reaffirmed their outlook on Sonoco Products, keeping the fair value estimate steady at $53.25 per share. Only minor adjustments to the discount rate, revenue growth, profit margin, and future P E assumptions led to no meaningful change in the price target.

What's in the News

  • Sonoco Products plans to consolidate its Metal Packaging and Rigid Paper Containers units into a unified structure organized by two regions: Consumer Packaging EMEA/APAC and the Americas, effective November 10, 2025 (company announcement).
  • The company reported that from June 30, 2025 to September 28, 2025 it repurchased no additional shares, but has completed its existing buyback program with a total of 3,286,255 shares repurchased for $212.03 million under the plan launched April 21, 2021 (buyback update).
  • Sonoco Products issued 2025 guidance, forecasting full year net sales in the range of $7.8 billion to $7.9 billion (earnings guidance).

Valuation Changes

  • Fair Value Estimate: unchanged at $53.25 per share, with no overall impact on the target price.
  • Discount Rate: risen slightly to 8.75 percent, reflecting a marginal adjustment in the company’s risk profile.
  • Revenue Growth: effectively unchanged at approximately 3.32 percent, indicating a stable top line outlook.
  • Net Profit Margin: essentially flat at about 6.88 percent, implying no material shift in expected profitability.
  • Future P E: edged up slightly to roughly 12.56 times, signaling only a minimal change in valuation multiples.

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Disclaimer

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