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Americold Realty: Buy Rating Driven by Strong Q4 Performance, Cost-Saving Measures, and Promising 2025 Outlook

Americold Realty: Buy Rating Driven by Strong Q4 Performance, Cost-Saving Measures, and Promising 2025 Outlook

Truist Financial analyst Ki Bin Kim maintained a Buy rating on Americold Realty (COLDResearch Report) today and set a price target of $27.00.

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Ki Bin Kim has given his Buy rating due to a combination of factors influencing Americold Realty’s performance. Firstly, the company’s fourth-quarter adjusted funds from operations per share exceeded both market expectations and Kim’s forecasts, primarily due to effective cost-saving measures. Additionally, the 2025 guidance for adjusted funds from operations per share aligns with market predictions but surpasses Kim’s more cautious estimates, driven by a stronger than anticipated same-store net operating income forecast.
Moreover, despite the challenging environment with inflationary pressures affecting food volumes and occupancy rates, the underlying guidance drivers appear reasonable. The current reduced stock valuation levels present an attractive opportunity, as the market’s expectations were better than anticipated. Furthermore, cost-cutting initiatives and Project Orion are expected to enhance service margins significantly in 2025, supporting the positive outlook for Americold Realty.

Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COLD in relation to earlier this year.

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