Here's Why You Should Hold On To Sealed Air (SEE) Amid Risks
Zacks Investment Research | Jul 10, 2017 10:06PM ET
On Jul 7, major specialty packaging service provider to a diverse set of end markets, Sealed air Corporation (NYSE:SEE) was upgraded by a notch to a Zacks Rank #3 (Hold).
We believe that the upgrade came on the back of recently-introduced innovations as well as enhanced demand for its core product portfolio, and accelerated growth in the global protein market along with the eCommerce sector. Sales for new products, including B+, FloWrap, StealthWrap, inflatable bubbles and automated mailers, are anticipated to increase in 2017 and contribute to both top-line and bottom-line growth. Additionally, the company believes that market differentiation of revolutionary innovation is gaining significant traction in each of its divisions.
In Food Care, customer interest continues to increase for the next generation target technology – Optidure. Sealed Air is winning new customers worldwide given its innovative platforms including the Internet of Things, Intellibot robotics, clean-in-place solutions, biodegradable chemistry, dry lube and others. Further, the company is exploring opportunities to expand existing relationships and grow its own brand into new channels.
The USDA projects 3.1% growth in red meat production in 2017 at record levels in the last decade. Sealed Air could witness a sizable pickup in North American Food Care operations. Sustained growth in red meat production is a result of successful rebuilding of the North American herd and increasing demand for protein from health conscious consumers. This demand factor combined with effective breeding management of the beef and pork herds within the U.S. has resulted in increased production and a greater growth opportunity for the Food Care packaging business.
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