Sustainable packaging corporation Sonoco Products Company (NYSE:SON) recently revealed that its subsidiary, Sonoco Recycling, has acquired Western North Carolina-based recovered paper recycler American Recycling. The financial terms of the deal have been kept under wraps.
With expected annual sales of about $9 million in 2021 and a processing capacity of 30,000 tons, the acquisition of American Recycling by Sonoco will allow the company to further strengthen its recycling capabilities and enhance its presence in the region.
Notably, American Recycling’s Asheville material recovery facility is located just 65 miles from Sonoco’s Newport, TN, paperboard mill.
The General Manager of Sonoco Recycling, Palace Stepps, said, “This acquisition provides Sonoco’s mill operations with a stable, lower-cost supply of recovered fiber with the opportunity to grow volumes in the region.”
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Recently, BMO Capital analyst Mark Wilde reiterated a Hold rating on the stock with a price target of $65, which implies upside potential of 12.6% from current levels.
Consensus among analysts is a Hold based on 1 Buy, 4 Holds and 1 Sell. The average Sonoco stock price prediction of $65.80 implies upside potential of 14% from current levels. Shares have declined 2.6% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on SONO. Further, 34.4% of portfolios tracked by TipRanks reduced their exposure to SON stock over the past 30 days. Download the mobile app now, available on iOS and Android.
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