Sealed Air assumed with a Market Perform at Raymond James

Raymond James assumed coverage of Sealed Air with a Market Perform rating and no price target as part of a broader research note on Packaging names. Heading into earnings, newfound volume concerns are weighing on shares in the group, with investor unease shifting from destocking to the impact of potential consumer weakness, the analyst tells investors in a research note. While Raymond James is adjusting its volume estimates slightly lower in the near term to reflect some conservatism for the second half however, the firm continues to expect a resumption of growth in 2024. The firm adds however that in the case of Sealed Air, while the company’s management noted it expects the U.S. cattle cycle headwind to persist in 2024, Raymond James sees the demand for beef potentially getting worse before it gets better with a wave of higher prices in 2024.