Steve Sakwa, an analyst from Evercore ISI, maintained the Hold rating on Lineage, Inc. (LINE – Research Report). The associated price target was lowered to $59.00.
Steve Sakwa has given his Hold rating due to a combination of factors affecting Lineage, Inc.’s financial performance and market conditions. The company’s Q1 AFFO was slightly below Evercore ISI’s estimates, primarily due to slower top-line growth caused by weaker pricing, although it was above consensus expectations. Despite better economic occupancy, challenges remain with occupancy and revenue due to tough comparisons and uncertainties over tariffs and economic growth.
Additionally, while Lineage announced a significant acquisition and development agreement with Tyson Foods, which is expected to add to AFFO in the future, the current demand environment remains challenging. Revenue growth has declined, and same-store revenue and NOI growth have fallen short of expectations. Although the company maintained its 2025 guidance, the macroeconomic environment remains uncertain, leading to a reduction in AFFO estimates and a lowered price target. These factors contribute to the Hold rating as the company navigates these challenges.
Sakwa covers the Real Estate sector, focusing on stocks such as CBRE Group, Eastgroup Properties, and Veris Residential. According to TipRanks, Sakwa has an average return of 0.3% and a 49.63% success rate on recommended stocks.