Sealed Air (SEE) Stock Forecast & Price Target

Sealed Air's stock outlook remains positive due to anticipated long-term growth in both its Food and Protective segments, with the Food segment projected to grow at 2-3% and the Protective segment historically achieving 3-4% growth driven by improvements in automation and operational efficiency. The company's recent restructuring efforts have resulted in higher operating leverage and incremental margins, complemented by strong share gains in the EMEA and LatAm regions during the third quarter. Furthermore, Sealed Air's raised 2025 EPS guidance to $3.25-$3.35, along with improved EBITDA expectations, highlights robust operational discipline and productivity enhancements that are expected to mitigate challenges from declining volume and net pricing pressures.

Sealed Air's stock outlook is negatively impacted by significant volume declines in its Food segment, specifically attributed to ongoing consumer softness and a sharp drop in beef consumption, reflecting a persistent trend where beef per capita consumption has decreased from ~80lbs in the 1980s to approximately ~50lbs today. The company's projections indicate a continued contraction in slaughter volumes, forecasting a decline of 5-6% leading into 2026 due to macroeconomic headwinds, including inflation-driven trade-downs to lower-cost products. Further complicating the situation, Sealed Air is facing challenges such as rising input costs, weaker beef production trends, and potential impacts from increasing restrictions on plastic use, all of which contribute to a somber long-term outlook for the company.