Sealed Air,
the company that makes Bubble Wrap, is on track to boost its earnings next year after a tough 2023, analysts at Citi said.
They raised their rating on the stock (ticker: SEE) to Buy from Neutral in a Monday report, maintaining a target of $41 for the price.
The stock was up 3.2% to $32.41 in afternoon trading.
The company, which makes Cryovac, and Liquibox in addition to Bubble Wrap, is on pace for mid-single-digit growth in earnings before interest, tax, depreciation, and amortization year-over-year in 2024, the Citi report said, citing cost savings and a rebound in sales volume.
Other positives for the stock include a “supportive valuation” and the possibility that Sealed Air could sell off pieces of its business or combine with another company. The stock has had a difficult year, falling 35% so far in 2023, a decline the analysts attributed to challenges in terms of sales volumes and “downward earnings revisions.”
When management reported the results for the second fiscal quarter in August, the company told investors demand is likely to remain weak for the rest of the year. It lowered its forecasts for net sales and adjusted earnings for the full fiscal year.
That sets up Sealed Air for a potential positive surprise, the analysts said.
Write to Emily Dattilo at [email protected]
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