SEE - Sealed Air slips after Bank of America downgrades to neutral

Bank of America dropped its rating on Sealed Air Corporation ( NYSE: SEE ) to Neutral from Buy.

The firm's overall view on the containerboard, beverage packaging and wood products sector is that energy and commodity volatility represent ongoing risks for packaging companies. Greater-than-expected weakness could lead to valuation multiples and earnings that fall below forecasts.

Sealed Air ( SEE ) is seen being at risk from the macro factors.

"Up a relative 7% ytd, we see some risks to SEE’s protective business given slowdowns occurring in e-commerce, while an economic slowdown could impact machinery sales. Also, contacts have relayed that protein market risks have increased due to drought conditions," updated analyst George Staphos.

The firm's price objective of $67 is derived from a three-part valuation approach utilizing a 15X to 17X 2022 P/E multiple, an 11X to 13x 2022 EV/EBITDA multiple, and intrinsic free cash flow.

Shares of Sealed Air ( SEE ) fell 1.23% premarket to $57.71.

The Seeking Alpha Quant Rating on SEE has been at Hold for all of 2022.

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