UBS Starts Americold Realty Trust (COLD) at Neutral

UBS analyst Michael Goldsmith initiates coverage on Americold Realty Trust (NYSE: COLD) with a Neutral rating and a price target of $14.00.

The analyst comments: "We initiate coverage of COLD with a Neutral rating reflecting ongoing sector-level supply & demand headwinds which we expect to limit opportunities for growth to recover. We anticipate Cold Storage occupancy to remain pressured into 2026 as industry inventory levels are likely to remain subdued from inflation, tariffs, and elevated food prices. Further, peer LINE's pricing strategy has triggered price discounting across the market. Though, we think COLD's fixed guarantee structure (60% fixed vs. LINE's 44%) and greater exposure to single-occupant facilities can both better sustain revenue trends as well as limit volatility as tenants rationalize space needs. Nonetheless, there seems to be limited visibility into demand & pricing conditions materially improving, with our proprietary Cold Storage rent growth model forecasting continued pressure. Inventory rebuilding could be a slow process, and macro conditions are relatively unsupportive. With COLD's shares trading at a NTM AFFO of 9.7x (5-yr avg of 20.5x), we think the market is factoring in near term lumpiness and a slow recovery pace."

For an analyst ratings summary and ratings history on Americold Realty Trust click here. For more ratings news on Americold Realty Trust click here.

Shares of Americold Realty Trust closed at $13.31 yesterday.

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