SEE - Sealed Air raised at Baird as shares have de-risked lower earnings expectations

2023-07-12 14:23:17 ET

Sealed Air ( NYSE: SEE ) +2.1% in Wednesday's trading as Baird upgraded the stock to Outperform from Neutral with a $49 price target, saying the company "commands a set of strong franchises with deep moats, noting that earnings power for the company is $4 irrespective of an anticipated guide down specific to 2023."

Following Sealed Air's ( SEE ) underperformance over the past 15 months, analyst Ghansham Panjabi said "a lowering of 2023 earnings expectations is already the baseline assumption on the Street, [and] irrespective of a tough Q2 earnings report, volume optics will improve substantially Q3 onward, with $4 earnings power for Sealed Air still realistic."

Panjabi said it is "hard to make a realistic case for the shares to trade below 13x earnings on a sustainable basis."

More on Sealed Air:

• Financial and valuation comparison to sector peers
• Analysis: Sealed Air: The Air Is Floating Out
• Stock price return: Down 14.5% YTD, down 24.5% in the past 12 months

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