Sonoco initiated with a Buy at Jefferies

Jefferies initiated coverage of Sonoco (SON) with a Buy rating and $62 price target Sonoco is nearing the end of a major portfolio transformation that began in 2020, the analyst tells investors in a research note. The firm says the company’s sizable divestitures masked its significant margin and free cash flow conversion expansion, compressing the stock’s multiple. With this phase nearly complete, Jefferies’ sum-of-the-parts analysis suggests that Sonoco’s pro forma portfolio is “materially underappreciated.” It sees 43% potential upside to the stock price.