Sealed Air projected to rebound in 2024 after challenging year: Citi
Sealed Air (NYSE:SEE), the corporation recognized for its production of Bubble Wrap, Cryovac, and Liquibox, is expected to witness a surge in earnings in 2024, as per analysts at Citi. This projection follows a difficult year for the company in 2023. The company's stock saw a rise of 3.2%, reaching $32.41 during Monday's afternoon trading sessions.
The experts at Citi have upgraded their rating of Sealed Air's stock from Neutral to Buy, maintaining the price target at $41. The anticipated boost is attributed to mid-single-digit growth in earnings before interest, tax, depreciation, and amortization (EBITDA) on a year-over-year basis in 2024. Analysts believe this growth will be driven by cost savings and a rebound in sales volume.
Despite facing challenges in 2023 that led to a 35% decrease in stock value due to difficult sales volumes and downward earnings revisions, analysts see several positive factors that could support its valuation. Among these is the potential for Sealed Air to divest parts of its business or consider a merger.
In August 2023, while presenting their second fiscal quarter results, Sealed Air's management indicated that they expect weak demand to continue throughout the rest of the year. This led them to revise their forecasts for net sales and adjusted earnings for the full fiscal year downwards. However, analysts suggest that this situation could set the stage for a potential positive surprise for Sealed Air in 2024.
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Sealed Air projected to rebound in 2024 after challenging year: Citi
