BofA Securities analyst Jeffrey Spector downgraded Lineage Inc (NASDAQ:LINE) to Neutral from Buy on Tuesday and lowered the price forecast from $70.00 to $49.00.
The analyst downgraded LINE and lowered the price target, citing reduced visibility driven by persistent revenue growth challenges, halted supply chain investments, and downward earnings revisions.
Spector noted that producers are delaying key decisions on expansions, plant locations, and transportation sourcing due to macroeconomic uncertainty driven by tariffs.
Lineage reported first-quarter 2025 EPS of $0.01, exceeding analyst expectations of a $ 0.05 loss, and posted revenue of $1.29 billion, which fell short of the $1.34 billion consensus estimate.
The Company maintains its full-year 2025 outlook, projecting adjusted EBITDA between $1.35 billion and $1.40 billion, and adjusted FFO per share in the range of $3.40 to $3.60.
The analyst stated that Lineage reported Q1 AFFO of $0.86, surpassing both their $0.80 estimate and the $0.85 consensus. However, revenue declined 4.2% compared to their projected 2.1% growth, driven by lower occupancy, reduced throughput volumes, and softer pricing in both storage and services.
Spector added that the 2025 AFFO guidance was upheld, partly due to recent acquisitions, including the Tyson Foods (NYSE:TSN) deal.
The analyst lowered the 2025 occupancy growth forecast to -1.7% from -0.6% and reduced 2025 throughput volume growth to -1.6% from +1.5%. 2026 occupancy growth remains flat, with throughput growth revised down to +0.3% from +1.5%.
The analyst revised 2025 occupancy growth down to -1.7% from -0.6%, and reduced throughput volume growth to -1.6% from +1.5%. For 2026, occupancy growth is expected to remain flat, while throughput growth is now forecasted at +0.3%, down from +1.5%.
Here are other recent analyst ratings on Lineage and their price targets:
- Piper Sandler: Maintained an Overweight rating, lowered price target from $75 to $60
- Baird: Maintained Outperform rating, lowered price target from $70 to $64
- Evercore ISI Group: Maintained an Inline rating, lowered price target from $68 to $59
- UBS: Maintained Neutral rating, lowered price target from $62 to $49
Price Action: LINE shares closed lower by 1.13% to $43.78 on Tuesday.
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