Sealed Air Earnings: End Market Demand Remains Tepid Amid Persistent Headwinds: Shares Attractive

Narrow-moat rated SEE reported fourth-quarter results that were largely in line with our expectations as near-term headwinds continued to pressure packaging end markets. Net sales in the fourth quarter declined 2% as contributions from acquisitions were not enough to offset weakness in SEE’s protective business, a trend that persisted for much of 2023. Soft end market demand across much of SEE’s portfolio has weighed on volumes, but positive developments in inventory destocking and consumer spending provide optimism for improvements in 2024. As such, we have maintained our $54 fair value estimate.