Citi analyst Anthony Pettinari has maintained their bullish stance on SON stock, giving a Buy rating on September 22.
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Anthony Pettinari has given his Buy rating due to a combination of factors that suggest a positive outlook for Sonoco Products. The company is expected to report its third-quarter earnings soon and is on track to complete the sale of Thermosafe by the end of the year, which marks the completion of a significant portfolio transformation. This strategic move is anticipated to streamline Sonoco’s operations and improve its financial stability.
Furthermore, the company is projected to have a deleveraged balance sheet, potentially falling below its long-term net leverage target by the end of 2026. This financial flexibility could allow for share buybacks in the latter half of the year. Additionally, Sonoco is currently trading at a valuation below its five-year average, suggesting room for growth. The company’s refined portfolio, characterized by less cyclicality and higher margins, supports the expectation of a premium valuation compared to historical levels. These factors collectively underpin the Buy rating assigned by Anthony Pettinari.
Pettinari covers the Consumer Cyclical sector, focusing on stocks such as Crown Holdings, Packaging, and Sealed Air. According to TipRanks, Pettinari has an average return of 16.0% and a 64.84% success rate on recommended stocks.
In another report released on September 22, Truist Financial also reiterated a Buy rating on the stock with a $58.00 price target.