Lineage stock rating downgraded by BofA Securities on demand challenges

Published 11/08/2025, 12:00
Lineage stock rating downgraded by BofA Securities on demand challenges

Investing.com - BofA Securities downgraded Lineage Inc (NASDAQ:LINE) from Neutral to Underperform and lowered its price target to $42.00 from $47.00 on Monday. The stock, currently trading at $41.64, has fallen 51% over the past year and sits near its 52-week low of $40.49, according to InvestingPro data.

The downgrade reflects ongoing demand challenges and persistent macroeconomic uncertainty that have led to a weaker-than-expected broad market inflection, according to the research firm. InvestingPro analysis shows the company maintaining a 5.07% dividend yield despite negative earnings per share of -$2.65.

BofA Securities expressed cautiousness about Lineage’s occupancy growth, with their estimates falling below company guidance and expectations for stagnant year-over-year occupancy in 2026.

The firm also cited limited visibility into the resolution of multiple headwinds affecting the sector, including tariffs, elevated interest rates, excess capacity, GLP1 drugs, and government benefit reductions.

Lineage Inc, which had previously maintained a Neutral rating from BofA Securities, now carries an Underperform rating with the new price target representing a reduction of $5 from the previous target.

In other recent news, Lineage Inc. reported its second-quarter 2025 earnings, which fell short of analysts’ expectations. The company revealed a modest increase in revenue, although the earnings did not meet forecasts. Despite these results, Lineage is maintaining its focus on innovation and operational improvements. Additionally, Evercore ISI has raised its price target for Lineage Inc. from $45 to $50, while keeping an "In Line" rating. This adjustment was based on a correction in Evercore ISI’s discounted cash flow analysis for the company. These developments highlight ongoing interest and analysis in Lineage’s financial trajectory.

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