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Investing.com - Truist Securities maintained its Buy rating and $24.00 price target on Americold Realty Trust (NYSE:COLD), representing a 62% upside from the current price of $14.83, despite the company reporting weaker-than-expected results and lowering its full-year guidance. According to InvestingPro data, analysts maintain a bullish consensus with price targets ranging from $18 to $31.
The cold storage real estate investment trust reduced its full-year same-store net operating income guidance to -2.75% from the previous +2% forecast. The company also lowered its adjusted funds from operations (AFFO) per share guidance to $1.42 from $1.47, falling short of the consensus estimate of $1.44. InvestingPro analysis indicates that while the company isn’t currently profitable, analysts expect positive earnings this year, with comprehensive insights available in the Pro Research Report.
Americold management lowered occupancy expectations, now projecting a 325 basis point year-over-year decline compared to the previous forecast of a 100 basis point drop. The company indicated it expects no seasonal uplift in the second half of the year, including during the typical Thanksgiving and holiday periods.
Truist Securities noted the magnitude of the guidance reduction could "moderately pressure the shares," particularly since the AFFO miss is larger when accounting for the $17.5 million reduction in capital expenditure guidance, which represents approximately 6 cents per share.
The research firm suggested the lack of expected holiday uplift was surprising given contrary indications from food producer earnings calls, speculating there might be "an element of conservativeness and washing out guidance" in Americold’s forecast.
In other recent news, Americold Realty Trust reported second-quarter earnings that fell short of analyst expectations. The company also revised its full-year outlook downward, attributing the change to ongoing industry challenges impacting occupancy levels. These developments have drawn attention from investors, as earnings and revenue results are crucial indicators of a company’s financial health. The temperature-controlled warehouse operator’s announcement highlights the persistent headwinds it faces in maintaining occupancy rates. While the company did not provide specific details on the revised outlook numbers, the guidance cut reflects broader industry trends. Analyst firms may continue to monitor these challenges as they assess the company’s future performance. These recent developments underline the importance of staying informed about earnings and revenue updates.
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