Lineage (LINE) faces persistent revenue growth difficulties, weak occupancy trends, and conservative supply chain investments amid broader economic uncertainty, BofA Securities said in a note Tuesday.
The firm said it is taking a more cautious stance, particularly after Lineage reported a 7.9% decline in Q1 net operating income and revenue growth of -4.2%, falling short of projections.
The brokerage also lowered the company's adjusted funds from operations estimates for 2025 and 2026, citing declining occupancy rates, subdued throughput volumes, and a lack of pricing power across storage and services. Updated expectations now assume 2025 throughput will decline 1.6%, with a slight rebound of 0.3% in 2026, according to the note.
Although Lineage has upheld its 2025 AFFO guidance, partly backed by acquisitions such as the Tyson Foods (TSN) deal, BofA analysts said they remain cautious due to limited visibility and customers holding lean inventories in a tariff-affected market.
BofA downgraded Lineage to neutral from buy, and lowered its price target to $49 from $70.
"While [Lineage] has underperformed, we believe Neutral is most appropriate until there is evidence of occupancy stabilization and improvement in [net operating income] trends," BofA said.
Shares of Lineage were down 2.5% in recent trading Tuesday.
Price: 43.19, Change: -1.10, Percent Change: -2.47
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。