Sealed Air (SEE) Stock Forecast & Price Target

Sealed Air's positive outlook is supported by an anticipated long-term industry growth rate of 2-3% for its Food segment, which benefits from a robust US cattle herd cycle, and a historical growth rate of 3-4% for its Protective segment, driven by demand in manufacturing and e-commerce markets. The company is executing a transformation toward automation and restructuring, resulting in improved operating leverage and incremental margins, alongside significant share gains in the EMEA and Latin America regions. Furthermore, the raised 2025 EPS guidance to $3.25-3.35, alongside anticipated EBITDA of $1.12-1.14 billion, reflects strong operating discipline and productivity improvements, bolstering confidence in its financial performance despite challenges in volume and pricing.

Sealed Air's stock outlook is negatively impacted by a decline in food packaging volumes, particularly due to softness in consumer demand and a faster-than-expected reduction in beef volumes, with a projected 5-6% decline in slaughter volumes extending through 2026. The protective segment has faced downturns since mid-2022, and while a potential positive shift is anticipated by 4Q24, ongoing macroeconomic challenges and changes in consumer behavior due to inflation are expected to exert further pressure on volumes, particularly in North America. The company's forecast incorporates a 2.5% volume contraction for 4Q, reflecting significant headwinds in both food and industrial processing, compounded by long-term trends in beef consumption decline.