UPDATE: JP Morgan Color on Sonoco Initiation

JP Morgan, which initiated coverage of Sonoco Products Co. (NYSE: SON), is providing some color on the stock.

“The SON story of the 2000s has been one of diversification and relatively steady top-line performance, partially offset by modest margin degradation,” JP Morgan writes. “On the latter, we think margins have likely bottomed, helped by volume growth, stabilizing price/cost, and productivity. That said, we expect organic volume growth below rigid peers.

“While we like SON's top-tier dividend yield (~3.5%) and think acquisitions could provide an additional kicker, we are waiting on the sidelines for now, as recently limited incremental volume margins could continue near term.”

Sonoco closed Friday at $34.11.