Lineage, Inc. (LINE – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Ronald Kamdem from Morgan Stanley downgraded the rating on the stock to a Hold and gave it 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 recent performance. The company has experienced a significant decline in its stock price, underperforming the broader REIT sector. This underperformance is primarily attributed to a sharper than expected deceleration in occupancy rates, pricing, and same-store net operating income (NOI), driven by softer demand and tenants maintaining low inventory levels.
Additionally, external factors such as tariffs have created uncertainty, further impacting demand. Despite the company’s valuation appearing fair on an AFFO multiple basis, there are concerns about the lack of visible demand recovery and potential risks to future guidance. These challenges, coupled with operating de-leverage and a transition in the CFO position, have led to a cautious outlook, justifying the Hold rating.
In another report released on June 13, Citi also maintained a Hold rating on the stock with a $49.00 price target.