Lineage downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Ronald Kamdem downgraded Lineage (LINE) to Equal Weight from Overweight with a price target of $50, down from $75. The shares have underperformed the broader real estate investment trust group as demand has been softer than expected leading to greater than anticipated deceleration in occupancy, pricing and same store net operating income, the analyst tells investors in a research note. The firm believes Lineage’s tenants maintain low inventory levels, limiting demand, while tariffs may be incremental headwind. It sees downside risk to Lineage’s guidance and says the demand recovery thesis is not playing out.