Sealed Air downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Arun Viswanathan downgraded Sealed Air to Sector Perform from Outperform with a price target of $40, down from $43. The firm commends the company and its board for halting volume loss and hiring a new outside CEO, but continues to project soft volumes, flat to negative price/cost, and high leverage. Even though Sealed Air faces easy compares in Protective in the second half of 2024 it has yet to see a positive inflection point in real demand and other headwinds could arise including other large customers pivoting away from its legacy Bubble-Wrap and Instapak products, the analyst tells investors in a research note. As such, RBC sees limited near-term catalysts for the shares.