UPDATE: Credit Suisse Downgrades Sealed Air (SEE) to Neutral

Credit Suisse analyst Curt Woodworth downgraded Sealed Air (NYSE: SEE) from Outperform to Neutral with a price target of $64.00 (from $80.00).

The analyst comments "We downgrade Sealed Air to Neutral from Outperform and lower our TP to $64 from $80 to account for modestly lower near-term earnings expectations and multiple compression in the sector. Sealed Air set the bar very high last quarter with price momentum well ahead of our forecasts, demonstrating the value in use delivered to the customer base and a highly tactical commercial organization. Our concern is that Sealed Air could have some give back in net price in the quarters ahead as inflationary pressures remain high for freight / labor and the demand environment appears more uncertain. We note that ~30% of SEE revenue is tied to e-Commerce (sharp weakness in 1Q mailer volumes) and Industrial end markets, which should experience weaker volume growth owing to cyclical and post Covid dynamics. Instapak is among SEE’s highest incremental margin product line and we note that Protective is ~40% of Sealed Air EBITDA with Industrial driving ~60% of segment EBIT."

For an analyst ratings summary and ratings history on Sealed Air click here. For more ratings news on Sealed Air click here.

Shares of Sealed Air closed at $57.75 yesterday.

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