Jefferies lowers Sealed Air stock price target to $33 on Food segment weakness

Investing.com - Jefferies lowered its price target on Sealed Air (NYSE:SEE) to $33.00 from $34.00 on Friday, while maintaining its Hold rating on the packaging company’s stock. The company currently trades at a P/E ratio of 14.4x and has maintained dividend payments for 20 consecutive years, with a current yield of 2.7%.

The price target reduction comes as Jefferies noted a weakening in Sealed Air’s Food business segment, despite stabilizing fundamentals in the company’s Protective division.

Jefferies highlighted that Sealed Air’s Protective segment is benefiting from the company’s go-to-market strategy, showing signs of improvement amid broader challenges.

The research firm acknowledged that Sealed Air is "executing well" and trades at a discounted multiple of 6.6x 2026 estimated EV/EBITDA, suggesting potential long-term upside for the stock.

Despite this positive long-term outlook, Jefferies cautioned that Sealed Air shares "could trade sideways" in the near term until there is greater clarity about the company’s ability to grow earnings in 2026.

In other recent news, Sealed Air Corporation reported its second-quarter earnings for 2025, exceeding analyst expectations. The company achieved an adjusted earnings per share (EPS) of $0.89, which was above the projected $0.71, resulting in a 25.35% surprise. Additionally, Sealed Air’s revenue reached $1.34 billion, slightly surpassing the anticipated $1.31 billion. These figures highlight the company’s strong financial performance in the recent quarter. Analysts had forecasted these metrics, and the results have been noteworthy in the investment community. There were no updates on mergers or acquisitions related to Sealed Air in the recent news. Analyst upgrades or downgrades have not been reported for Sealed Air at this time. Investors are closely watching these developments as they consider their investment strategies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.