Sonoco Products (SON) Stock Forecast & Price Target

Sonoco Products has demonstrated resilience and growth, achieving a 4% year-over-year increase in consumer volumes, with notable demand for US metal cans driving significant performance in its product offerings. The company's operational efficiency is evident, as segment EBITDA margins expanded approximately 350 basis points year-over-year, primarily led by the Industrial Packaging segment. Furthermore, Sonoco's position as the largest North American URB producer, coupled with recent industry consolidation, enhances its pricing power and potential for robust financial returns.

Sonoco Products has faced downward revisions in its 2025 earnings per share guidance, dropping from a range of $6.00-$6.20 to a single estimate of approximately $6.00, indicating potential financial strain. Furthermore, the company's EBITDA guidance remains unchanged at $1.3-1.4 billion, yet there are several significant downside risks, including lower-than-expected prices, increasing input costs, and moderating demand in key markets. Additionally, competition in the packaging sector and challenges related to the integration of Eviosys further complicate Sonoco's financial outlook.