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Research Alert: CFRA Maintains Hold Opinion On Shares Of Sealed Air Corporation
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Sealed Air Corporation
Aug 7, 2025 11:36 AM

02:15 PM EDT, 08/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target price by $4 to $32, valuing SEE at 7.0x our 2026 EBITDA estimate, a discount to peers and SEE's three-year average of 8.4x. We hold our 2025 EPS view at $3.21, with unchanged guidance, but lift 2026's by $0.02 to $3.46. Despite the attractive valuation, limited growth prospects constrain multiple expansion, as our projections indicate three-year CAGRs of 1.0% for sales and 2.3% for adjusted EBITDA, though adjusted EPS growth of 6.0% provides encouragement. The balance sheet improved, with leverage declining to 3.6x in Q2 2025 from 3.7x sequentially and 3.8x Y/Y, and we expect management to deploy free cash flow of $389 million in 2025 and $483 million in 2026 toward debt reduction to achieve target leverage of 3.0x by year-end 2026. We expect consistent sequential improvements to bring leverage to 3.3x by 2025 before reaching the target in 2026. While we appreciate SEE's robust cash generation, we remain cautious until the company demonstrates sustained organic sales growth.

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