- RBC Capital Markets analyst Michael Carroll upgraded Americold Realty Trust Inc COLD to Outperform from Sector Perform at an increased price target of $36 from $33.
- The analyst is bullish on the company’s growth prospects post-announcement of Q1 2023 results.
- COLD’s Q1 revenues of $676.5 million missed the consensus of $707.2 million. Nevertheless, the adjusted FFO per share of $0.29 came higher than $0.26 a year ago.
- Carroll expects COLD to witness strong earnings growth, with improving operating trends and occupancy to remain at the pre-COVID level in the coming years.
- The analyst expects AFFO to increase by 12% in 2023, 16% in 2024, and 10% in 2025. He raised estimates for adjusted FFO per share to $1.24 for 2023 and $1.45 for 2024.
- However, Carroll expects the recently occurred cybersecurity breach and higher interest expense to pose headwinds. The analyst expects the security breach to impact EPS by around $0.07 in 2023, resulting in lower revenues and increased labor and G&A expenses.
- Price Action: COLD shares are trading lower by 0.59% at $30.42 on the last check Monday.
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