Americold Realty Trust (COLD) faces continued near-term operating pressure as weak consumer demand, particularly at the lower end, leads some customers to reduce inventory levels and hand back unneeded space, RBC Capital Markets said.

The brokerage said in a Thursday note that the economic occupancy could decline by 200 to 300 basis points in 2026 as contract renewals roll through.

While long-term fixed commitments with its largest customers have supported occupancy and pricing, some renewals are likely to come at lower volumes or discounted rates, which could pressure storage margins, the firm said.

RBC cut its AFFO forecast to reflect the softer operating backdrop, now modeling earnings down about 12.2% in 2026.

"We still believe COLD trades at a discounted valuation likely well below replacement cost. However, this gap will likely not meaningfully narrow until the broader market conditions stabilize," according to the note.

RBC lowered its rating to sector perform from outperform and lowered its price target to $13 from $17.

Shares of Americold Realty Trust were down 1.9% in recent Friday trading.

Price: 11.64, Change: -0.22, Percent Change: -1.85