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