Sealed Air (SEE) Stock Forecast & Price Target

Sealed Air's stock outlook is bolstered by the anticipated long-term growth of the food packaging industry at 2-3%, alongside a robust 3-4% growth trajectory for the Protective segment, which caters to manufacturing and consumer end markets. The company's restructuring efforts have led to improved operating leverage and incremental margins, alongside notable market share gains in Europe, the Middle East, and Latin America. Additionally, Sealed Air's raised EPS guidance to $3.25-3.35 and EBITDA estimate of $1.12-1.14 billion for 2025 underscores its strong year-to-date performance and effective operational discipline, positioning the company favorably despite volume fluctuations.

Sealed Air's negative outlook is primarily attributed to volume declines in its Food segment, experiencing a ~0.2% year-over-year drop in 3Q, exacerbated by ongoing consumer softness and trade-down behavior in North America, particularly affecting beef volumes which are forecasted to decline 5-6% into 2026. The company's reliance on the meat packaging market is further jeopardized by long-term trends showing a decrease in U.S. beef consumption, which has dropped from ~80 lbs per capita in the 1980s to ~50 lbs today, and is expected to continue impacting revenue in the near term. Compounding these challenges are the risks associated with managing declining prices, rising input costs, and the effects of restructuring initiatives, all of which raise concerns about Sealed Air's ability to sustain profitability amidst shifting market dynamics.