BofA warns Fed risks policy mistake with early rate cuts
Investing.com - RBC Capital has lowered its price target on Lineage Inc (NASDAQ:LINE) to $51.00 from $64.00 while maintaining an Outperform rating on the stock. The $10.35 billion market cap company, currently trading near its 52-week low of $40, offers a dividend yield of 5.18%.
The price target reduction comes as Lineage continues to face operational headwinds and an uncertain fundamental backdrop, according to RBC Capital.
The research firm noted these challenges are expected to increase earnings volatility, particularly in the near term, prompting analysts to take a more conservative stance on the company’s outlook.
RBC Capital significantly reduced its earnings estimates for Lineage following the company’s second-quarter 2025 results.
The firm identified a potential Federal Reserve interest rate cut in September as the next possible catalyst for the stock, while noting that operational catalysts are more difficult to identify at this time.
In other recent news, Lineage Inc. reported its second-quarter 2025 earnings, which fell short of analysts’ expectations despite a modest increase in revenue. This earnings miss comes amidst ongoing challenges for the company. In a related development, BofA Securities downgraded Lineage Inc. from Neutral to Underperform, citing persistent demand challenges and macroeconomic uncertainty. The firm also reduced its price target for the company from $47.00 to $42.00. On a different note, Evercore ISI raised its price target for Lineage Inc. to $50.00 from $45.00, maintaining an "In Line" rating. This adjustment was attributed to a correction in the firm’s discounted cash flow analysis. These developments highlight the mixed sentiment among analysts regarding Lineage’s future performance.
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