NEW YORK (TheStreet) -- Shares of Sealed Air Corp. (SEE) are gaining 1.53% to $52.43 in morning trading Friday after Jefferies raised its price target to $45 from $42 while maintaining its "hold" rating.
Sealed Air is engaged in food safety and security, facility hygiene and product protection business that operates food care, diversey care and product care segments.
Sealed Air's initiative is focused on targeting new markets, stepping up innovation, and a new value sell business model, and it aims at selling $900 million by 2020, Jefferies noted.
"With new products expected to tick up to 20% of sales from 13% by 2020, we believe the company can outpace the market by creating a new market and focusing on selling a solution," Jefferies analysts said.
Additionally, with the U.S. cattle herd size expected to increase in 2015 and 2016, slaughter rates should inflect in 2017 and should help accelerate volumes and mix in food packaging, Jefferies added.
Separately, TheStreet Ratings team rates SEALED AIR CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEALED AIR CORP (SEE) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SEALED AIR CORP has improved earnings per share by 39.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SEALED AIR CORP increased its bottom line by earning $1.20 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($2.14 versus $1.20).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Containers & Packaging industry. The net income increased by 37.1% when compared to the same quarter one year prior, rising from $70.90 million to $97.20 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. When compared to other companies in the Containers & Packaging industry and the overall market, SEALED AIR CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- 39.09% is the gross profit margin for SEALED AIR CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.56% is above that of the industry average.
- Net operating cash flow has significantly increased by 134.20% to $319.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 109.19%.
- You can view the full analysis from the report here: SEE Ratings Report