Bank of America just raised its EUR/USD forecast
On Monday, Truist Securities confirmed its Buy rating and $44.00 price target for Sealed Air Corporation (NYSE:SEE), following the announcement that Senior Vice President and Chief Operating Officer Emile Chammas will leave the company on April 1, 2025. According to InvestingPro data, analysts see up to 23% upside potential for SEE, with price targets ranging from $33 to $54. The departure coincides with the end of his executive officer term and is a mutual decision without any indication of disagreement or strategy change within the company. The company maintains strong fundamentals, with InvestingPro reporting a GOOD Financial Health Score of 2.54 and a 20-year track record of consistent dividend payments.
Sealed Air disclosed the upcoming departure of Chammas, who has been with the company for over 14 years, in a recent announcement. According to Truist Securities, this move seems to be more akin to a retirement rather than stemming from any conflict. The decision for Chammas to leave at this point, rather than earlier, may suggest confidence in Sealed Air’s new management and their plans for an accelerated turnaround.
In addition to addressing the executive change, Truist Securities also updated its financial model for Sealed Air based on the company’s 10-K filing. While earnings per share (EPS) and earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates remain the same, free cash flow (FCF) projections for 2026 and 2027 have been slightly reduced. Currently, the company boasts a strong free cash flow yield of 10%, though InvestingPro notes that 8 analysts have recently revised their earnings expectations downward for the upcoming period. The updated model forecasts 2026 FCF at $426.4 million, a slight decrease from the previously estimated $431.4 million. The 2027 FCF projection is now $458.5 million, down from $468.5 million. The estimate for 2025 remains unchanged.
The report from Truist Securities comes after Sealed Air’s announcement and subsequent discussion with the company, which provided reassurance about the continuity of the company’s strategic direction. The firm’s outlook on Sealed Air remains positive, as reflected in the reiterated price target and rating. With a market capitalization of $4.84 billion and historically low price volatility, the stock currently trades at a P/E ratio of 18.26x. For deeper insights into SEE’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence.
In other recent news, Sealed Air Corporation reported its fourth-quarter earnings for 2024, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $0.75, compared to the forecasted $0.68. Revenue for the quarter was in line with projections at $1.37 billion, maintaining stability in a challenging market. The company also highlighted a strategic focus on innovation and cost optimization, which has been pivotal in navigating market challenges. Additionally, Sealed Air announced the departure of Chief Operating Officer Emile Chammas, effective April 1, 2025, as part of a mutual agreement. The company has not yet announced a successor or detailed any interim leadership plans.
In terms of future expectations, Sealed Air projects net sales between $5.1 billion and $5.5 billion for 2025, with an expected 1% growth at the midpoint, excluding foreign exchange impacts. The company aims for adjusted EBITDA between $1.075 billion and $1.175 billion, targeting mid-single-digit earnings growth. Investors and stakeholders are closely monitoring these developments, particularly in light of the company’s ongoing leadership transition and strategic initiatives.
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