Craig Mailman, an analyst from Citi, has initiated a new Hold rating on Lineage, Inc. (LINE).
Craig Mailman has given his Hold rating due to a combination of factors that present both opportunities and challenges for Lineage, Inc. On the positive side, the company benefits from its significant scale and market share, which are advantageous in the cold storage REIT sector. Additionally, Lineage has potential for external growth and consolidation, supported by the increasing demand in the fresh and frozen food segment.
However, these positives are counterbalanced by several concerns. The business is heavily operational with lower margins compared to traditional industrial REITs, and there are potential headwinds related to labor costs and availability. Furthermore, the demand for cold storage space is currently tepid, and the company’s global exposure introduces foreign exchange risks. These factors, along with limited stock liquidity, contribute to the Hold rating, indicating a balanced view of the company’s prospects.
Mailman covers the Real Estate sector, focusing on stocks such as Kimco Realty, Rexford Industrial Realty, and Equity Commonwealth. According to TipRanks, Mailman has an average return of 4.9% and a 56.18% success rate on recommended stocks.
In another report released on March 12, J.P. Morgan also maintained a Hold rating on the stock with a $66.00 price target.