Ahead of the Bell: Sonoco Products meeting

NEW YORK - Packaging maker Sonoco Inc.'s fourth-quarter outlook, expected to be updated Friday morning by its chief executive, during an investor meeting, is expected to be "reassuring" and "positive," analysts said.

KeyBanc Capital Markets analyst Christopher Manuel said he expects the Hartsville, S.C.-based company to "highlight a number of positive catalysts including new products, some new conversions to composite cans and the recent plummet in the price of one of its primary raw materials, old corrugated containers (cardboard)," during the meeting being held in New York.

He raised his earnings per share estimate for the fourth quarter to 63 cents from 59 cents and his 2008 earnings per share estimate to $2.38 from $2.35.

JP Morgan analyst Claudia Shank Hueston, who called the stock "one of the most compelling in our universe," maintained her fourth-quarter estimate of 62 cents per share and her 2008 estimate of $2.38 per share.

Analysts polled by Thomson Reuters expect, on average, fourth-quarter earnings per share of 60 cents and 2008 earnings per share of $2.36.

Hueston said Sonoco's consumer segment "is positioned to benefit from a more frugal shopper who is eating at home more often, while tubes and cores should benefit from the recent drop in input costs. The balance sheet is among the best in the packaging sector; free cash flow is robust."

Both analysts reiterated their "Buy"-equivalent rating on the shares. Hueston has a $30 price target; Manuel has a $34 price target.

Shares closed Thursday at $24.50.

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