Sealed Air (SEE) Stock Forecast & Price Target

Sealed Air's sales reached $893 million, reflecting a 2% year-over-year increase, driven primarily by an 8% contribution from mergers and acquisitions and a 1% increase in pricing, despite experiencing a 3% decline in volume and negative foreign exchange impacts. The company’s Protective segment is positioned for improvement due to easier comparables, increased automation, and the introduction of new products, which could bolster volume and enhance overall business performance, given its approximate 40% incremental EBITDA margins. Additionally, Sealed Air is expected to realize significant savings from its ongoing CTO2Grows initiatives, which could lay the groundwork for future growth despite facing near-term challenges from negative net pricing and incentive compensation adjustments.

Sealed Air is facing persistent demand weakness in both its Food and Protective segments, with reported declines in volumes of 3.3% and 4.7% year-over-year, respectively. The company's guidance for 2024 indicates a revised adjusted EBITDA of $1.10 billion, which falls short of prior expectations, along with earnings per share projections that also underperform against market consensus. Additionally, the anticipated flat sales figure of $5.4 billion reflects challenges such as negative pricing pressures and the ongoing shift from plastics to alternative packaging solutions.