Sonoco Products' (SON) earnings estimates are more likely to move lower than higher over the coming quarters, BofA Securities said Thursday.

Bofa updated its Q3 EPS estimate to $1.85, versus a market consensus of $1.95, and its full-year 2026 EPS estimate to $5.70, compared with the Street consensus of $5.82.

Sonoco shares are up 23% year-to-date on an absolute basis, even as its estimates have followed a declining pattern in recent years, BofA said, with 2026 and 2027 EPS estimates once above $6 and $6.50, respectively.

Pricing actions may take more time to materialize, the analysts said. Fastmarkets did not recognize the $60 per ton price hike in July for uncoated recycled board, which was partly embedded in Sonoco's Q4 guidance, despite the company's and other producers' views that the market was tight, the note added.

The company is pursuing customer-specific price increases and more aggressive fuel surcharge actions in the interim, while Europe seems to be benefiting from tightening URB paper market conditions, the brokerage said.

BofA downgraded Sonoco Products to neutral from buy and lowered its price target to $60 from $69.

Shares of Sonoco Products were down 5.5% in Thursday trading.

Price: 51.36, Change: -3.38, Percent Change: -6.17