Americold Realty Trust (COLD) continues to face a challenging macro environment, potentially pressuring the company's storage margins and adjusted funds from operations, RBC Capital Markets said in a Thursday note.
The company reported Q3 adjusted funds from operations of $0.35 per diluted share, unchanged from a year earlier, while revenue declined to $663.7 million from $674.2 million.
"The macro backdrop remains challenged as cold storage demand is being constrained by weak consumer trends particularly on the lower end," RBC said, noting customers' lower inventory levels. Recent updates from the Circana retail data also indicate soft frozen and refrigerated volume sales, the investment firm added.
RBC said it expects Americold Realty Trust to be more cautious with capital spending, adding that the company could consider asset sales or a joint venture partner to manage leverage levels.
RBC downgraded Americold Realty Trust to sector perform from outperform and lowered the price target to $13 from $17.
Price: 11.56, Change: -0.31, Percent Change: -2.57
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