Stifel Nicolaus analyst Lars Kjellberg maintained a Buy rating on Sealed Air (SEE – Research Report) yesterday and set a price target of $48.80.
Lars Kjellberg has given his Buy rating due to a combination of factors that highlight Sealed Air’s strong financial performance and strategic positioning. The company has demonstrated resilience by achieving a 3% adjusted EBITDA and a 14% adjusted EPS beat against consensus expectations, despite a slight shortfall in top-line revenue. This performance is supported by significant cost savings of $89 million, which have helped maintain healthy margins around 20%, even as the Protective segment faces ongoing challenges.
Additionally, Sealed Air’s Food segment, which constitutes 67% of its revenue, has shown robust year-over-year growth, driven by strong market demand and share gains. The recent management change, with the former CFO stepping up as CEO, is expected to further accelerate profitable growth. The company’s guidance for 2025 indicates stable sales and EBITDA figures, with a projected free cash flow range that underscores its financial stability. These elements, combined with a 51.9% upside to the price target, form the basis for Kjellberg’s optimistic outlook on Sealed Air’s stock.
According to TipRanks, Kjellberg is a 4-star analyst with an average return of 9.0% and a 57.97% success rate. Kjellberg covers the Consumer Cyclical sector, focusing on stocks such as International Paper Co, Avery Dennison, and Graphic Packaging.
In another report released today, Wells Fargo also reiterated a Buy rating on the stock with a $43.00 price target.