Analyst Gabrial Hajde from Wells Fargo reiterated a Buy rating on Sealed Air (SEE – Research Report) and decreased the price target to $39.00 from $43.00.
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Gabrial Hajde has given his Buy rating due to a combination of factors that highlight Sealed Air’s ongoing transformation and potential for growth. The company has shown strong performance in the first quarter, primarily through effective cost management and operational improvements, which are expected to continue in the upcoming quarters. Despite a challenging macroeconomic environment, Sealed Air is poised for modest margin expansion.
Hajde emphasizes the momentum in Sealed Air’s transformation, particularly in the Food segment, which is delivering resilient returns. The reorganization into two distinct market-focused businesses is anticipated to drive profitable growth in the Protective segment. Additionally, the risk/reward profile is seen as very favorable, with the potential for further gains if trade tensions ease. The price target of $39 is based on a multiple of the estimated EBITDA for 2025, reflecting confidence in the company’s strategic direction and financial outlook.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $48.80 price target.
SEE’s price has also changed moderately for the past six months – from $37.100 to $28.940, which is a -21.99% drop .