Sealed Air (SEE) Stock Forecast & Price Target

Sealed Air's financial outlook is bolstered by a projected long-term growth rate of 2-3% in the food packaging industry, augmented by the 3-4% growth historically seen in its Protective segment. The company is achieving structural improvements through its transformation towards automation, leading to higher operating leverage and incremental margins, which positions it favorably despite some volume challenges. Furthermore, strong performances in the EMEA and Latin American markets, along with revised 2025 EPS guidance of $3.25-3.35, underscore Sealed Air's resilience and commitment to enhancing productivity and market share.

Sealed Air has experienced a decline in food segment volumes by approximately 0.2% year-over-year in the third quarter, driven primarily by weakened consumer demand and reduced beef consumption, which is expected to continue into 2025 with a projected decline of 5% in slaughter volumes. Additionally, the protective segment has been underperforming since mid-2022, creating uncertainty about its recovery, despite some expectations for positive inflection by the fourth quarter of 2024. The company's long-term outlook is further clouded by multiple macroeconomic challenges, such as rising input costs, the potential for declining prices, and ongoing restructuring initiatives, all of which could negatively impact profitability and market position.