Sealed Air (SEE) Stock Forecast & Price Target

Sealed Air's financial outlook is supported by the projected long-term growth of the food packaging industry at 2-3%, alongside the historical growth of the protective segment at 3-4%, which enhances its revenue potential. The company's strategic transformation towards automation and restructuring has resulted in improved operating leverage and incremental margins, positioning it favorably within the market. Additionally, positive developments in market share in Europe and Latin America, coupled with an increase in 2025 EPS and EBITDA guidance, highlight strong operational performance and potential for future growth.

Sealed Air has exhibited declining volumes in its Food segment, particularly noting a decrease of approximately 0.2% year-over-year in the third quarter, primarily due to consumer softness and a faster-than-anticipated drop in beef volumes. Additionally, the company is expected to face ongoing volume contraction, with projections indicating a 5% decline in slaughter volumes for 2025, driven by negative macro trends such as lower meat consumption and inflationary pressures prompting consumers to opt for cheaper alternatives. With a historical trend of declining beef consumption in the U.S. and various operational challenges, including rising input costs and restructuring efforts, Sealed Air's outlook remains negative.