Goldman Sachs Downgrades Sonoco Products (SON) to Sell, Cites EPS Headwinds

Goldman Sachs downgraded Sonoco Products (NYSE: SON) from Neutral to Sell with a price target of $31 (down from $32).

Despite a strong dividend and long track record, the firm said SON screens expensive relative to peers and they see 5% downside to 2012 consensus EPS.

Goldman sees three drives hurting earnings: "(1) continued soft US packaged food demand given elevated inflation at the retail level, (2) secular volume declines for tubes and cores, and (3) pressure on SON’s margins from higher recycled paper (OCC) prices."

For an analyst ratings summary and ratings history on Sonoco Products click here. For more ratings news on Sonoco Products click here.

Shares of Sonoco Products closed at $34.36 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
• Beike (BEKE) PT Raised to $23 at Morgan Stanley
• S&P 500 may pull back before midterms, but Citi says buy the dip