Sealed Air stock target raised to $34 at Jefferies

On Thursday, Sealed Air Corporation (NYSE:SEE) saw its price target increased by Jefferies from $29.00 to $34.00, while the firm retained a Hold rating on the stock. The adjustment follows an assessment of the company’s free cash flow yield and market performance. Sealed Air’s stock is currently considered undervalued, trading with a 9% free cash flow yield, suggesting that the market has not fully recognized the value of its Protective segment. InvestingPro data confirms this undervaluation thesis, with the stock showing a strong 9.08% return over the past week and maintaining dividend payments for 20 consecutive years.

The analyst acknowledged recent leadership changes and transformation efforts within Sealed Air’s Protective division, noting improvements in operations. However, for the stock to see enhanced performance, the analyst indicated that volumes would need to reach a bottom. Despite the challenges faced by the Protective segment, the Food business has demonstrated robustness, achieving share gains in the bag sector and expanding in international markets. The company maintains a healthy financial position with a Good overall financial health score according to InvestingPro, supported by a solid current ratio of 1.26 and gross profit margins of 30.29%.

Sealed Air’s strengthened position in the Food business is attributed to its resilience and ability to capture market share. This performance has contributed to the company’s overall valuation and the revised price target. The company’s growth in international markets has also been a positive factor, reflecting its expanding global footprint.

The increased price target to $34.00 reflects a more optimistic outlook for Sealed Air’s financial health and market potential. While maintaining the Hold rating, the revised target suggests that there may be room for the stock to appreciate if the company continues to build on its current strengths and address areas where improvement is needed.

Investors and market watchers will be observing Sealed Air’s progress closely, especially in relation to the volume trends in the Protective segment and the continued expansion of the Food business. The company’s future trading performance is expected to be influenced by these factors, as well as the broader market’s recognition of Sealed Air’s value proposition. For deeper insights into Sealed Air’s valuation and growth potential, InvestingPro offers comprehensive analysis through its Pro Research Report, featuring detailed financial metrics and expert analysis among its 8+ additional exclusive ProTips for this stock.

In other recent news, Sealed Air Corporation announced its first-quarter 2025 earnings, reporting an adjusted earnings per share (EPS) of $0.81, which significantly surpassed the forecast of $0.67. The company’s revenue was in line with expectations, totaling $1.27 billion, although it marked a slight decline from the previous year. Despite this, Sealed Air reaffirmed its full-year 2025 outlook, maintaining confidence in its strategic initiatives. The company noted that its Food segment experienced organic growth, while the Protective segment saw an 8% decline. Analyst discussions during the earnings call highlighted the company’s effective cost management and strategic initiatives that contributed to the earnings beat. Furthermore, Sealed Air’s CEO emphasized ongoing efforts in cost control and productivity to address potential market challenges. The company also mentioned that it anticipates second-quarter net sales of approximately $1.3 billion and adjusted EPS around $0.71. The firm’s strategic focus remains on navigating the evolving trade environment and enhancing its market position.

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