Sealed Air stock price target cut to $36 at Jefferies

On Tuesday, Sealed Air Corporation (NYSE:SEE) saw its price target reduced by Jefferies from $38.00 to $36.00, though the firm maintained a Hold rating on the stock. Currently trading at $31.64, near its 52-week low of $30.87, the stock has caught the attention of value investors. According to InvestingPro analysis, the company appears slightly undervalued based on its Fair Value metrics. The adjustment follows the company’s strategic initiatives and organizational restructuring efforts.

Jefferies highlighted that Sealed Air’s strategy, which has been communicated over the past 12 to 18 months, remains on course. The completion of the business unit reorganization and the establishment of new leadership are seen as pivotal steps towards expediting the company’s recovery and improving capital deployment. InvestingPro data shows the company maintains a strong financial health score, with particularly robust cash flow metrics and an impressive free cash flow yield of 11%.

The research firm expressed optimism about Sealed Air’s future, particularly in the second half of 2025. The expectation is that the company’s Protective volumes will rebound due to specific actions taken by Sealed Air. This anticipated recovery is a positive note for the company’s prospects moving forward. Notable among its achievements is a 20-year track record of consistent dividend payments, demonstrating long-term financial stability.

Sealed Air’s focus on turning around its operations and making more targeted capital investments has been acknowledged as a positive move. The firm’s commentary suggests that the groundwork laid by the recent changes could lead to improved performance in the latter part of the year.

Investors and stakeholders of Sealed Air may find reassurance in the company’s commitment to its strategic plan and its potential to navigate through the current phase towards growth. While 8 analysts have recently revised their earnings expectations downward, the overall analyst consensus maintains a Hold rating. The price target revision serves as a reflection of the company’s ongoing efforts and expected outcomes in the near future. For deeper insights into Sealed Air’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

In other recent news, Sealed Air Corporation reported its fourth-quarter earnings for 2024, exceeding analysts’ expectations with an adjusted earnings per share (EPS) of $0.75, surpassing the forecasted $0.68. The company’s revenue for the quarter aligned with projections at $1.37 billion. Sealed Air’s performance showcased resilience, with net sales reaching $1.4 billion, marking a 1% increase on a constant currency basis. Despite a slight decline in full-year net sales and adjusted EPS, the company maintained its adjusted EBITDA at $1.11 billion, consistent with the previous year.

In a separate development, Sealed Air announced that Emile Chammas, its Senior Vice President and Chief Operating Officer, will depart the company effective April 1, 2025. This decision was mutually agreed upon, and Chammas will receive severance as outlined in the company’s Executive Severance Plan. Meanwhile, Truist Securities maintained its Buy rating and $44 price target for Sealed Air, reflecting a positive outlook on the company’s strategic direction and management plans.

Truist Securities also updated its financial model based on Sealed Air’s 10-K filing, with slight reductions in free cash flow projections for 2026 and 2027. The firm’s analysis indicates confidence in Sealed Air’s management and their plans for an accelerated turnaround, despite the upcoming leadership change. These developments highlight Sealed Air’s ongoing strategic initiatives and financial adjustments as the company navigates market challenges.

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