William Blair analyst Ross Sparenblek has maintained their neutral stance on SEE stock, giving a Hold rating on February 26.
Ross Sparenblek has given his Hold rating due to a combination of factors influencing Sealed Air’s current market position. The company’s recent financial performance showed some positive signs, such as exceeding expectations in fourth-quarter revenue and adjusted EBITDA margins. However, there are ongoing challenges, particularly in the protective segment, which has been under pressure since early 2022 with negative volume trends.
The leadership transition, with Dustin Semach stepping in to accelerate strategic actions, aims to address these issues, but the outcome remains uncertain. While there is optimism for a recovery in the protective segment by the second half of 2025, the market’s volatility and the need for further evidence of strategy effectiveness contribute to the cautious outlook. Additionally, Sealed Air’s current trading valuation is below its historical average, reflecting the market’s tempered expectations. These factors collectively support the Hold rating, as the potential for recovery is balanced by existing risks and uncertainties.
In another report released on February 26, Morgan Stanley also maintained a Hold rating on the stock with a $38.00 price target.