Freedom Broker downgrades Industrial Logistics stock to Hold despite raising price target

Published 05/08/2025, 17:42
Freedom Broker downgrades Industrial Logistics stock to Hold despite raising price target

Investing.com - Freedom Broker downgraded Industrial Logistics Properties Trust (NASDAQ:ILPT) from Buy to Hold on Tuesday, while raising its price target to $5.80 from $5.40. The stock, currently trading at $6.0, has shown remarkable momentum with a 66.48% gain year-to-date, according to InvestingPro data.

The downgrade comes despite the firm’s acknowledgment that ILPT has successfully executed its deleveraging strategy, which was a core element of Freedom Broker’s previous buy recommendation. InvestingPro analysis suggests the stock remains undervalued, with a strong current ratio of 4.35 indicating healthy liquidity.

Freedom Broker noted that ILPT’s second-quarter results confirmed the company had completed transformative refinancing of its floating-rate debt and implemented a five-fold dividend increase, which has "materially de-risked the balance sheet and restored investor confidence."

The firm raised its price target to $5.80 to reflect ILPT’s improved financial stability and clearer earnings visibility, despite the rating downgrade.

Freedom Broker explained the downgrade by stating that with the primary catalysts now realized and the stock’s valuation beginning to close the gap with peers, the risk/reward profile is now balanced.

In other recent news, Industrial Logistics Properties Trust (ILPT) reported its second-quarter 2025 earnings, revealing a slight revenue beat. The company achieved actual revenue figures of $112.1 million, surpassing the forecasted $111.68 million. However, the earnings per share (EPS) were reported at -$0.32, indicating ongoing profitability challenges. These developments are part of recent updates concerning the company. The market’s cautious yet optimistic response was noted, though this article does not address stock price movements. There were no updates regarding mergers or acquisitions for ILPT. Additionally, there is no recent information about analyst upgrades or downgrades for the company. Investors may want to consider these recent developments when evaluating Industrial Logistics Properties Trust.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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