Analyst Ki Bin Kim from Truist Financial maintained a Buy rating on Americold Realty and decreased the price target to $17.00 from $20.00.
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Ki Bin Kim has given his Buy rating due to a combination of factors that, despite current challenges, suggest potential for future growth. The management of Americold Realty has acknowledged ongoing difficulties in the cold storage sector, including a softer demand environment and increased supply pressures, which are expected to impact pricing power. However, these challenges are not unique to Americold but are industry-wide, indicating that the company is navigating a broader market trend.
Despite the anticipated negative occupancy trends and slight declines in rates, the company is strategically positioned to manage these issues. The expected tightening of the spread between economic and physical occupancy suggests a potential stabilization in the future. Additionally, while the AFFO estimates for 2025 and 2026 have been lowered, they remain within the company’s guidance range, indicating a level of resilience. These factors combined lead to a Buy rating, as the long-term prospects and strategic positioning of Americold Realty offer potential for recovery and growth.
In another report released on September 15, Barclays also maintained a Buy rating on the stock with a $20.00 price target.