Americold Realty Trust Fundamentals Seem to Be Stabilizing, RBC Says

MT Newswires Live08-17

Americold Realty Trust's (COLD) Q2 results showed a "healthy update" backed by stronger operating trends and announced deals that may help to de-lever its balance sheet, RBC Capital Markets said in a note emailed Monday.

The investment firm said Americold's higher guidance was "largely driven by better operating trends including occupancy, throughput, and rates." Also, management said that the company's fundamental backdrop is "increasingly stable," the note said, adding clients seem to have already de-stocked inventories to levels more in line with current demand, and supply pressures appear to be retuning to normal.

RBC said, however, it believes the wider food market may still see an impact from higher prices that might hit sales.

The investment firm raised Americold's 2026 adjusted funds from operations estimates to $1.30 per share, up $0.03 per share. It also raised the company's 2027 AFFO estimates to $1.33 per share, an increase of $0.02 per share.

RBC said the increased 2026 estimate is partly driven by the company's Q2 beat, while the higher 2027 estimate is partly driven by non-core asset sales.

RBC kept Americold's sector perform rating and $16 per share price target.

Price: 14.50, Change: -0.38, Percent Change: -2.55

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