Sealed Air (NYSE:SEE) edges higher in Tuesday's trading as J.P. Morgan upgraded shares to Neutral from Underweight with a $58 price target, seeing the company's restructuring efforts helping offset cost inflation.
The annualized effects of cost savings benefits likely mean that Sealed Air's (SEE) operating cost structure for 2022 is "pointed in the right direction as price/cost turns positive," J.P. Morgan's Jeffrey Zekauskas wrote.
The analyst thinks it is difficult for Sealed Air (SEE) to significantly outperform consensus estimates, and he does not view the company as particularly recession resistant from an equity performance standpoint.
But he notes the company is "interested in growing its equipment business through acquisition, which, depending on the size and valuation of possible acquisitions, may increase the near-term risk in these high-quality shares."
Sealed Air (SEE) recently was upgraded to Outperform at RBC Capital after the stock sold off following disappointing Q2 results.