Sealed Air stock price target raised by RBC Capital on cost initiatives

Published 05/11/2025, 11:40
Sealed Air stock price target raised by RBC Capital on cost initiatives

Investing.com - RBC Capital has raised its price target on Sealed Air (NYSE:SEE) to $52.00 from $48.00 while maintaining an Outperform rating on the packaging company’s stock. Currently trading at $35.77, SEE shows significant upside potential of 21% based on analyst consensus targets ranging from $31 to $50, according to InvestingPro data.

The revision follows Sealed Air ’s third-quarter results, which exceeded expectations, prompting the company to raise its fiscal year 2025 guidance. The stock has responded positively with a 6.17% gain over the past week and an impressive 31.52% return over the last six months.

RBC Capital cited Sealed Air’s continued cost reduction and productivity initiatives as key factors driving the improved outlook, though these positive developments were partially offset by lower price and volume. InvestingPro analysis shows the company maintains a solid financial foundation with a "GOOD" overall health score and attractive 7% free cash flow yield.

The investment firm expressed bullishness on Sealed Air’s ongoing turnaround in its Protective division and the company’s strategic shift in its Food segment toward higher-growth Retail and Foodservice markets. InvestingPro highlights that SEE has maintained dividend payments for 20 consecutive years, currently offering a 2.24% yield.

RBC Capital adjusted its EBITDA forecasts for Sealed Air to $274 million for Q4, $1.13 billion for FY25, and $1.185 billion for FY26, while also introducing estimates for fiscal year 2027. Trading at a P/E ratio of 12.61, SEE appears slightly undervalued according to InvestingPro’s Fair Value assessment. Discover comprehensive analysis in the Pro Research Report, available for Sealed Air and 1,400+ top US stocks.

In other recent news, Sealed Air Corporation reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company announced an adjusted earnings per share (EPS) of $0.87, which exceeded the anticipated $0.70. Additionally, Sealed Air outperformed revenue predictions by reporting $1.35 billion, compared to the forecasted $1.31 billion. These results highlight the company’s strong financial performance in the recent quarter. Following the earnings announcement, analysts have taken note of Sealed Air’s positive results. The earnings figures and revenue growth are significant developments for investors monitoring the company’s financial health. These recent developments come amidst a competitive market environment.

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