William Blair analyst Ross Sparenblek has maintained their neutral stance on SEE stock, giving a Hold rating today.
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Ross Sparenblek has given his Hold rating due to a combination of factors surrounding Sealed Air’s recent acquisition agreement. The company is set to be acquired by Clayton Dubilier & Rice for $42.15 per share, which represents a significant premium over its recent trading prices. This acquisition offer values the company at an enterprise value of $10.3 billion, with an EBITDA multiple of 8.9 times the estimated 2026 EBITDA.
Given the current trading price aligns with the acquisition offer, investors are evaluating the potential for competing bids. Sparenblek’s analysis suggests a fair value range of $41 to $53 per share, based on a sum-of-the-parts analysis. This analysis considers different valuation multiples for Sealed Air’s business segments, factoring in industry comparisons and market underperformance. The Hold rating reflects the expectation that the stock price will remain stable at the offer level unless a higher bid emerges.
In another report released today, Stifel Nicolaus also downgraded the stock to a Hold with a $45.00 price target.