In a report released yesterday, Samir Khanal from Bank of America Securities maintained a Buy rating on Americold Realty, with a price target of $18.00.
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Samir Khanal’s rating is based on several key considerations. Firstly, the appointment of Rob Chambers as the new CEO is seen as a positive move, given his extensive experience in supply chain and logistics, although no major strategic shifts are anticipated. This leadership change is expected to enhance the company’s operational management and investor relations, despite recent adjustments to the company’s AFFO guidance.
Furthermore, Americold Realty’s stock is currently trading at a relatively low valuation of 10.6x AFFO, which is considered attractive compared to its peers and historical lows. Despite ongoing challenges in the cold storage sector, such as tariffs and high interest rates, the company’s conservative guidance and reaffirmation of its outlook provide a stable foundation for future growth. These factors contribute to the Buy rating, as the stock presents a potential opportunity for investors seeking value in the market.
In another report released on August 21, Truist Financial also maintained a Buy rating on the stock with a $20.00 price target.