Sealed Air Exits 2020 on a High Note; There's More Growth to Come in 2021

As the world makes headway against the coronavirus pandemic, results have gradually improved for Sealed Air. Fourth-quarter sales rose 3.2% to $1.34 billion, while segment-adjusted EBITDA increased 2.4% to $285 million. Even though this growth was far from break-neck, we view it as respectable, given the challenging economic backdrop. We expect similar improvement in 2021 as the company laps relatively soft results between the first quarter and third quarter. The vaccine rollout should lead to continued economic progress, supporting Sealed Air's performance. We have slightly increased our fair value estimate to $46 per share from $45 due to the time value of money. Our narrow moat rating is unchanged. With shares trading roughly in line with our valuation, we view them as fairly valued at this time.