Citi upgrades this packaging company that can rally more than 30%

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Analyst Anthony Pettinari upgraded the packaging company to buy from neutral.

He assigned a $41 price target, which implies a 30.5% rally from Friday's close. "Sentiment on SEE has been highly negative given share price weakness, persistent vol challenges, and downward earnings revisions," Pettinari said in a Monday note. "We see 3Q results as a potential catalyst, with upside from cost saves and reiterated volume outlook after a sharply lowered bar in 2Q.

Citi noted that the company's earnings growth will be driven by cost savings from its 3-year CTO2Grow program , which is expected to generate between $140 million and $160 million annualized cost savings by the end of 2025. Sealed Air management may still look towards more aggressive measures to improve the company's share price after experiencing poor stock performance and underlying headwinds, the analyst noted.

 

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