Americold (COLD) Drops 0.37% as Evercore ISI Cuts Target to $19 Amid Inflation, Supply Chain Woes

Shares of Americold Realty Trust (COLD) fell 0.37% on Tuesday, marking a two-day decline of 3.51% and pushing the stock to a record low with an intraday drop of 1.11%. The selloff follows a key analyst update from Evercore ISI, which revised its price target for the REIT to $19 from $22 while maintaining an "Outperform" rating. The adjustment reflects updated assumptions about COLD’s operational performance and broader market dynamics, including inflationary pressures, supply chain volatility, and interest rate risks that weigh on the cold storage and logistics real estate sector.

The price target reduction, though signaling tempered near-term growth expectations, underscores the firm’s continued confidence in COLD’s long-term strategic positioning. Analysts highlighted model adjustments made after a REIT conference, incorporating insights on the company’s capital allocation efficiency, tenant relationships, and potential to outperform peers in a challenging macroeconomic environment. The "Outperform" rating suggests the stock is viewed as undervalued relative to its intrinsic worth, potentially attracting value investors despite the lower target.

Investor sentiment appears divided, with the rating serving as a stabilizing factor amid the price decline. While the reduced target may curb aggressive buying, the positive outlook could attract institutional investors prioritizing long-term fundamentals. COLD’s ability to navigate rising borrowing costs, optimize its asset base, and expand into high-growth markets will be critical in determining whether the analyst’s optimism translates into sustained price recovery. The REIT’s historical underperformance—losing over 50% of its value since 2021—adds urgency to its strategic execution amid sector-specific headwinds.

The market reaction highlights the complexity of evaluating REITs in a high-interest-rate environment. Evercore ISI’s dual message—lowering the target while affirming a strong rating—reflects a nuanced view of COLD’s resilience versus near-term risks. For investors, the update emphasizes the need to balance short-term volatility with the company’s long-term potential, particularly as global supply chain shifts and e-commerce growth reshape demand for cold storage infrastructure.