Lineage, Inc., the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Ronald Kamdem from Morgan Stanley maintained a Hold rating on the stock and has a $50.00 price target.
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Ronald Kamdem has given his Hold rating due to a combination of factors affecting Lineage, Inc.’s financial outlook. The company is experiencing mixed signals in inventory demand, which is expected to result in below-consensus growth for same-store net operating income (NOI) and adjusted funds from operations (AFFO) in the upcoming quarter. Additionally, there are concerns about the potential impact of tariffs and the overall demand environment, which could pose risks to the company’s guidance.
Kamdem anticipates that Lineage, Inc.’s management may lower their AFFO guidance for the year, aligning it with consensus estimates, which are already below the company’s previous guidance. The expectation of lower NOI due to softer demand and tariff challenges is a significant headwind. Moreover, debates around whether demand will remain structurally lower due to inflation, tariffs, and financing costs, or if there will be a recovery, add to the uncertainty. These factors contribute to the decision to maintain a Hold rating, reflecting limited visibility on demand recovery and potential operational challenges.
In another report released on August 1, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $44.00 price target.