Sonoco Products (SON) Stock Forecast & Price Target

Sonoco Products has demonstrated a solid performance with a 4% year-over-year increase in consumer volumes, particularly in US metal cans, indicating strong demand and effective commercial execution. The company's EBITDA margins have expanded by approximately 350 basis points year-over-year, driven by robust price/cost dynamics and productivity improvements, especially in the Industrial Packaging segment. Additionally, Sonoco's position as the largest North American uncoated recycled paperboard producer, complemented by recent industry consolidation, has enhanced its pricing power and potential for increased returns.

Sonoco Products is facing several challenges that contribute to a negative outlook on its stock. The company has lowered its 2025 EPS guidance, indicating potential difficulties in maintaining profitability despite maintaining its EBITDA forecast of approximately $1.3-1.4 billion. Additionally, risks such as increasing input costs, moderating demand trends across key product categories, and growing competition threaten to undermine its financial stability and future growth prospects.