On Wednesday, Citi updated its stance on Americold Realty Trust (NYSE:COLD), increasing the stock's price target from $28.00 to $30.00 while maintaining a Neutral rating. The adjustment follows Americold's second quarter results of 2024, which prompted Citi to revise its model for the company.
The firm's 2024 estimated adjusted funds from operations (AFFO) for Americold Realty Trust have been raised from $1.43 to $1.48. This revision is based on the company's performance which surpassed expectations due to better service margins and a higher core net operating income (NOI) than previously predicted.
Citi's new price target implies an approximate 19x multiple of the company's expected AFFO for the year 2025. This multiple is used as a valuation metric, reflecting the firm's anticipation of Americold's earning potential.
The updated price target of $30.00 offers a perspective on the company's value, based on the latest financial results and forecasts. Citi's neutral stance indicates that while they acknowledge the company's improved financial metrics, they are not providing a recommendation to buy or sell the stock at this time.
Investors and market watchers may consider this price target change as a reflection of Americold Realty Trust's recent performance and Citi's outlook on the company's financial health moving forward.
In other recent news, Americold Realty Trust has been the subject of several analyst upgrades. Scotiabank increased its price target for the company to $31, citing improved Adjusted Funds From Operations (AFFO) guidance as the primary reason for the adjustment. Similarly, Truist Securities raised its price target for Americold to $33, following the company's second-quarter results and revised AFFO per share estimates for 2024 and 2025. Baird also raised its price target for Americold to $31, highlighting the company's improved operating efficiencies and strong same-store net operating income performance.
In recent developments, Americold reported a substantial increase in its second quarter 2024 financial results, with AFFO reaching approximately $109 million or $0.38 per share, marking a 36% rise from the same period the previous year. This performance was primarily driven by robust same-store warehouse services and effective pricing strategies. The company also reported a core EBITDA of $165 million, reflecting a margin of 25%. Amid these developments, Americold raised its full-year 2024 AFFO guidance to a range of $1.44 to $1.50 per share.
These upgrades and strong financial performance underscore Americold Realty Trust's strategic focus on internal efficiencies and growth initiatives, positioning the company favorably for future developments.
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