Sonoco Products Receives New Buy Rating From Wall Street and a $63 Price Target

By Joel South Published Apr 1, 10:24AM EDT

Quick Read

Deutsche Bank initiated coverage of Sonoco Products (SON) with a Buy rating and $63 price target, citing confidence in the company’s repositioned portfolio centered on metal and rigid paper packaging following the Eviosys acquisition, despite a challenging macro backdrop of soft demand and tariff pressures.
For long-term investors, Sonoco’s defensive food-packaging exposure, low valuation at 10x forward P/E, and 100-year dividend history offer downside protection while management targets 20% earnings growth in 2026 and announced price increases expected to drive $35 million in annual EBITDA.
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Sonoco Products Receives New Buy Rating From Wall Street and a $63 Price Target — © yoh4nn / E+ via Getty Images

Deutsche Bank analyst Hillary Cacanando initiated coverage of Sonoco Products (NYSE:SON) with a Buy rating and a $63 price target as part of a broader packaging sector launch. The call arrives as Sonoco stock trades at $55.43, well below both the new Deutsche Bank target and the consensus analyst target of $64.38.

For long-term investors, the initiation adds a credible bullish voice to a stock that has rallied 3.80% over the past week and has seen a 24.41% year-to-date gain.

Ticker	Company	Firm	Action	Old Rating	New Rating	Old Target	New Target
SON	Sonoco Products	Deutsche Bank	Initiation	N/A	Buy	N/A	$63

The Analyst’s Case

Deutsche Bank is constructive on the rigid and flexible packaging group while remaining cautious on fiber-based packaging. Cacanando’s initiation reflects confidence in Sonoco’s repositioned portfolio, which now centers on metal and rigid paper consumer packaging following the December 2024 acquisition of Eviosys and the divestiture of non-core assets including ThermoSafe and the Thermoformed & Flexibles Packaging business.

The firm acknowledges a challenging macro backdrop. Headwinds include soft consumer demand, cost inflation, higher oil prices, and significant tariff-related pressures. WTI crude recently hit $98.71 per barrel before pulling back to $89.33, and University of Michigan consumer sentiment sits at a subdued 56.6. Despite these pressures, Deutsche Bank’s constructive stance on rigid packaging suggests the firm sees Sonoco’s defensive food-packaging exposure as a buffer.

Company Snapshot

Sonoco is a global packaging company with approximately 22,000 employees across 265 operations in 37 countries. Its two core segments are Consumer Packaging and Industrial Paper Packaging. Full-year 2025 revenue reached approximately $7.5 billion, with the Consumer Packaging segment posting record Q4 sales and profitability driven by the Eviosys integration. Industrial Paper Packaging expanded margins for nine consecutive quarters. The company has paid dividends for 100 consecutive years, with a current quarterly dividend of $0.53 per share.

Why the Move Matters Now

Sonoco trades at a trailing P/E of 9x and a forward P/E of 10x, a meaningful discount to broader market multiples. Management is targeting a 20% improvement in adjusted earnings in 2026, excluding divested businesses, supported by $700 million to $800 million in operating cash flow guidance. Announced price increases on uncoated recycled paperboard of $70 per ton and converted paperboard products of 8%, effective April 2026, are expected to generate approximately $35 million in annual EBITDA. The Q1 2026 earnings release is scheduled for April 21, giving investors a near-term catalyst to watch.

What Investors Are Watching

Deutsche Bank’s Buy initiation on Sonoco stock reinforces a growing analyst consensus that the company’s transformation is underappreciated at current valuations. With over two-thirds of sales from consumer food packaging, Sonoco carries a degree of demand resilience that matters in a soft-sentiment environment. The stock’s beta of 0.483 also signals lower volatility relative to the broader market. Risks remain, including Eviosys integration execution and tariff uncertainty, but the combination of a low valuation, improving cash flow, and a century-long dividend track record makes this analyst initiation a notable data point for income-oriented, long-term investors tracking the packaging sector.

About the Author Joel South →

Joel South has been an avid investor and financial writer for over 15 years, publishing thousands of articles analyzing stocks, markets, and investment strategies across multiple leading financial media platforms. He spent 12 years at The Motley Fool, where he worked as an investment analyst and Bureau Chief before ascending to direct the Fool.com investing news desk, overseeing editorial operations and content strategy. During his tenure, Joel co-hosted an investing podcast and became a recognized voice in financial media through numerous TV and radio appearances discussing stock market trends and investment opportunities.

Currently serving as General Manager and Managing Editor at 24/7 Wall Street, Joel has published hundreds of in-depth analyses focusing on large-cap stocks, dividend-paying equities, and market-moving developments. His comprehensive coverage spans earnings previews, price predictions, and investment forecasts for major companies across all sectors—from technology giants and semiconductor manufacturers to consumer brands and financial institutions. Joel's expertise encompasses t fundamental analysis, options market interpretation, institutional investor behavior, and translating complex market dynamics into clear, actionable insights for individual investors.