Hold Rating Reiterated as Industry Headwinds Ease; Cost Cuts Support Unchanged $39 Price Target

Morgan Stanley analyst Ronald Kamdem has maintained their neutral stance on LINE stock, giving a Hold rating on May 7.

Ronald Kamdem has given his Hold rating due to a combination of factors, reflecting a balance between emerging positives and remaining uncertainties. Management highlighted signs that major industry drags—such as inventory destocking, incremental supply, and trade-related volatility—are beginning to moderate, and cost-cutting efforts of roughly $50 million on an annualized basis are expected to provide a modest earnings uplift in the back half of 2026 with a fuller impact anticipated in 2027.

At the same time, near-term operating metrics remain mixed, with only modest pricing gains, slight pressure on revenue per pallet from product mix, and expectations for same-store NOI to stay slightly negative amid trade-related throughput headwinds. The balance sheet is still more leveraged than the company’s medium-term target, leaving management focused on deleveraging and potential asset sales rather than aggressive growth, and short-term FX and seasonal occupancy trends are likely to cap upside, supporting the decision to maintain the price target at $39 and reiterate a Hold stance.

In another report released on May 7, Scotiabank also maintained a Hold rating on the stock with a $42.00 price target.