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Investing.com - Raymond (NSE:RYMD) James lowered its price target on Americold Realty Trust (NYSE:COLD) to $22.00 from $25.00 on Monday, while maintaining an Outperform rating on the cold storage real estate investment trust. The stock, currently trading at $14.42, has declined significantly from its 52-week high of $29.79.
The firm cited near-term occupancy challenges stemming from weak end-consumer demand as the primary reason for the price target reduction. Despite these short-term headwinds, Raymond James maintained its positive long-term outlook on the company. According to InvestingPro’s comprehensive analysis, the stock currently shows several key indicators that could impact its recovery potential.
The research firm highlighted Americold’s unique efficiency and productivity initiatives, which it believes will drive mid-single-digit NOI (Net Operating Income) growth next year. Raymond James also noted the company’s potential for greater operating leverage with mid-30% NOI margins. The company, with a market capitalization of $4.12 billion, currently offers an attractive dividend yield of 6.33%.
Raymond James expressed confidence in Americold’s attractive valuation, both on an absolute and relative basis compared to peers in the real estate sector. The firm specifically mentioned the company’s solid AFFO (Adjusted Funds From Operations) growth prospects.
According to Raymond James, Americold is expected to deliver an AFFO compound annual growth rate of 7% from 2025 through 2027, supporting the maintained Outperform rating despite the lower price target. The broader analyst consensus remains positive, with price targets ranging from $17 to $27, suggesting potential upside from current levels.
In other recent news, Americold Realty Trust reported its second-quarter earnings for 2025, revealing a significant miss on earnings per share (EPS) compared to analyst forecasts. The company posted an EPS of $0.01, which was notably below the expected $0.07, marking an 85.71% negative surprise. Despite the earnings shortfall, Americold’s revenue slightly exceeded expectations, coming in at $650.7 million against a forecast of $644.88 million. These mixed results have drawn attention from investors and analysts alike. There were no updates on any mergers or acquisitions involving Americold Realty Trust. Additionally, there have been no recent upgrades or downgrades from analyst firms concerning the company’s stock. These developments highlight the ongoing scrutiny Americold faces in meeting market expectations.
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