Americold Realty Trust stock price target lowered to $23 at KeyBanc

Published 01/07/2025, 15:48
Americold Realty Trust stock price target lowered to $23 at KeyBanc

Investing.com - KeyBanc lowered its price target on Americold Realty Trust (NYSE:COLD) to $23.00 from $30.00 on Tuesday, while maintaining an Overweight rating on the cold storage real estate investment trust. The stock, currently trading at $16.60 and near its 52-week low, offers a 5.53% dividend yield and has fallen over 32% in the past year.

The price target reduction reflects KeyBanc’s lower estimates for the company, though the firm continues to see potential upside in Americold compared to competitors at current levels.

KeyBanc cited several factors supporting its continued Overweight rating despite the target cut, including recently lowered guidance that it views as having less downside risk and an improved warehouse services margin that could lead to significant upside.

The firm also pointed to Americold’s more favorable balance sheet with fewer interest expense headwinds expected in 2026, as well as what it considers a more favorable valuation compared to competitors.

KeyBanc acknowledged that demand and supply challenges persist in the cold storage sector, but noted that with sentiment at "exceedingly low levels," the potential exists for sharp swings in cold storage sentiment, particularly if warehouse operations stage a recovery in the second half of 2025.

In other recent news, Americold Realty Trust has announced a quarterly dividend of $0.23 per share for the second quarter of 2025, maintaining the same level as the first quarter, but marking a 5% increase compared to the same period last year. The dividend will be paid on July 15, 2025, to shareholders on record as of June 30, 2025. In a strategic move to enhance global growth, Americold has reshuffled its executive team, promoting Rob Chambers to the newly created role of President, responsible for global operations. Truist Securities has revised its price target for Americold to $24 from $27 while maintaining a Buy rating, following adjustments to its 2025 earnings forecasts. Additionally, Raymond (NSE:RYMD) James has lowered its price target for Americold to $25 from $27, maintaining an Outperform rating due to revised guidance for the year. Meanwhile, JPMorgan has downgraded Americold from Overweight to Neutral, citing industry headwinds and lower throughput volumes. Despite these challenges, Americold’s full-year financial guidance for 2025 remains unchanged. The company continues to focus on its operational strategy and efficiency initiatives to drive future growth.

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