2024-07-09 16:27:14 ET
Summary
- Sonoco Products Company's shares have come under pressure after a big acquisition, as a poor share price reaction prices-in a lot of bad news.
- The company has a long heritage, being founded in 1899, and has a great long-term dividend track record.
- The recently announced acquisition of Eviosys is expected to drive immediate earnings accretion and synergies, but leverage ratios are a concern.
Shares of Sonoco Products Company (SON) have come under real pressure after the company announced a big acquisition, somewhat unexpected to some investors. The deal, synergy estimates and anticipated earnings accretion looks a bit demanding, but the soft share price reaction has priced in a lot of bad news already....
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Sonoco Products: A Big Deal Creates Some Uncertainty