Sonoco initiated with Outperform on structural advantage at Raymond James

Raymond James analyst Matt Roberts last night initiated coverage of Sonoco Products with an Outperform rating and $62 price target. The analyst expects the Eviosys acquisition to be accretive to both earnings and cash flow, with upside from the potential $1B in divestitures “accelerating the deleveraging story.” Longer term, the firm believes Sonoco’s “idiosyncratic growth opportunities are underappreciated,” and it expects near-term volume growth to drive further productivity gains in “what has already been a strong cost performance amid the portfolio simplification.” It views Sonoco’s “defensive position” in consolidated markets as a structural advantage.