Sonoco Products (SON) Stock Forecast & Price Target

Sonoco Products has demonstrated solid financial performance, highlighted by a year-over-year increase of approximately 4% in consumer volumes, particularly with significant growth in U.S. metal cans, which reflects strong demand and effective commercial execution. The company has also seen segment EBITDA margins expand by around 350 basis points year-over-year, largely driven by robust price/cost dynamics and productivity improvements, particularly in its Industrial Packaging segment. Additionally, Sonoco's position as the largest North American unbleached recycled board (URB) producer, coupled with recent industry consolidation, enhances its pricing power and overall return potential.

Sonoco Products has revised its 2025 earnings per share guidance downwards to approximately $6.00, reflecting a decrease from its previous range of $6.00 to $6.20, despite maintaining an EBITDA forecast of $1.3 to $1.4 billion. The company faces several downside risks, including potential declines in product prices, rising input costs, and moderating demand trends in key segments such as metal containers and rigid packaging. Additionally, increased competition and challenges related to the integration of acquisitions pose significant threats to future capital returns and overall financial performance.