JPMorgan downgrades Americold stock on industry headwinds

Published 23/06/2025, 09:58
JPMorgan downgrades Americold stock on industry headwinds

Investing.com - JPMorgan downgraded Americold Realty Trust (NYSE:COLD) from Overweight to Neutral on Monday, while lowering its price target to $21.00 from $24.00. The stock, currently trading at $16.79, has declined over 20% year-to-date, though InvestingPro data suggests the company is trading near its Fair Value.

The downgrade reflects JPMorgan’s concerns about current industry dynamics and headwinds tied to lower throughput volumes, which could make it difficult for the stock to outperform the firm’s overall REIT coverage universe in the near term. Despite these challenges, the company maintains a healthy 5.48% dividend yield.

JPMorgan indicated it currently prefers other stocks and sectors within its relative rating system, despite acknowledging the long-term potential of the Americold platform to drive core growth when a recovery occurs. With a market capitalization of $4.78 billion and an EV/EBITDA multiple of 15.35x, the company remains a prominent player in the Industrial REITs industry. Get deeper insights into Americold’s valuation metrics and growth potential with a InvestingPro subscription.

The firm noted that Americold stock has re-rated downward significantly and trades at considerably lower EBITDA multiples compared to a year ago, which provides a positive re-valuation opportunity for both the company and the cold storage sector in the future.

JPMorgan observed that market sentiment currently remains heavily focused on lower occupancies and throughput volumes rather than the positive aspects of Americold’s development-driven external growth initiatives.

In other recent news, Americold Realty Trust has announced a reshuffling of its executive team to enhance global growth. Rob Chambers has been promoted to President, overseeing worldwide operations, while Bryan Verbarendse takes over as President, Americas. The company is maintaining its full-year financial guidance for 2025 as previously announced. Additionally, Americold declared a quarterly dividend of $0.23 per share for the second quarter of 2025, representing a 5% increase compared to the same quarter last year.

Analyst firms have made several adjustments to their financial outlooks for Americold. Truist Securities lowered its price target from $27 to $24 but maintained a Buy rating, citing revised AFFO forecasts for 2025 and 2026. Raymond (NSE:RYMD) James also reduced its price target to $25, maintaining an Outperform rating, and noted a revised guidance due to anticipated weaker inventory builds. Evercore ISI adjusted its price target to $25 from $28, keeping an Outperform rating, and highlighted Americold’s effective cost management despite a downward revision in full-year 2025 AFFO guidance. These developments reflect the analysts’ assessments of Americold’s financial performance and the broader macroeconomic environment.

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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