Sealed Air (SEE – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst George Staphos from Bank of America Securities maintained a Buy rating on the stock and has a $39.00 price target.
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George Staphos has given his Buy rating due to a combination of factors that suggest potential upside for Sealed Air’s stock. The company is currently trading at a discount, with an implied negative growth rate of 4%, whereas a more typical growth rate would be around 3%. Despite the cyclical pressures on its Protective and Food segments, there are signs of stabilization on the horizon, which supports maintaining a Buy rating.
Additionally, industry insights indicate that Sealed Air’s packaging solutions, particularly those involving polyvinylidene chloride, remain economically favorable due to their shelf-life benefits. While retail beef prices are high, demand is expected to rise modestly by 2025, which could benefit Sealed Air. Furthermore, the company’s valuation, trading at an approximately 8x EBITDA multiple, is attractive compared to peers like Packaging Corp and International Paper, which have higher multiples. These factors collectively contribute to the positive outlook for Sealed Air’s stock.
In another report released on June 17, UBS also reiterated a Buy rating on the stock with a $39.00 price target.
SEE’s price has also changed slightly for the past six months – from $34.030 to $31.230, which is a -8.23% drop .