Sonoco Products (SON) Stock Forecast & Price Target

Sonoco Products has demonstrated robust growth with consumer volumes rising approximately 4% year-over-year, driven in part by increased demand for US metal cans. The company's strong pricing strategies and productivity enhancements have led to a notable expansion in segment EBITDA margins by around 350 basis points year-over-year, particularly in Industrial Packaging. Additionally, Sonoco’s leading position as the largest North American uncoated recycled board (URB) producer, coupled with recent industry consolidation, has enhanced its pricing power and overall returns.

Sonoco Products is facing potential challenges that may negatively impact its financial outlook, including lower-than-expected prices and rising input costs, which could affect profitability. The company has maintained its EBITDA guidance but has lowered its EPS forecast for 2025, signaling concerns about future earnings performance amid moderating demand trends in key markets such as metal containers and rigid packaging. Additionally, risks associated with new plant start-up costs, increased competition, and the complexities of integrating newly acquired entities could further strain Sonoco's financial stability and growth prospects.