Sealed Air (SEE) Stock Forecast & Price Target

Sealed Air's stock outlook is positively influenced by the expected 2-3% long-term growth in the food packaging industry, driven by a robust U.S. cattle herd cycle, alongside Protective's historical growth rate of 3-4% linked to manufacturing and consumer markets. The company's strategic focus on automation and restructuring has led to higher operating leverage and incremental margins, underscoring its commitment to operational efficiency. Additionally, an increase in year-to-date earnings per share guidance to $3.25-3.35, coupled with anticipated EBITDA growth to $1.12-1.14 billion, highlights Sealed Air's strong performance and effective management in the face of challenging market conditions.

Sealed Air's stock outlook is negatively impacted by a projected decline in slaughter volumes of 5% in 2025 and 5-6% in 2026, exacerbated by ongoing consumer softness and heightened inflation leading to a trend of consumers trading down to lower-cost products. The company's Food segment exhibited a slight volume decline of approximately 0.2% year-over-year in the third quarter, driven primarily by diminishing beef demand in North America, which has been in a long-term declining trend. Additionally, the Protective segment's volumes have been declining since mid-2022, contributing to concerns about the company's ability to effectively manage costs amid falling prices and persistent macroeconomic headwinds.