Scotiabank has adjusted its outlook for Lineage (LINE), lowering the company's rating from Outperform to Sector Perform. This change is accompanied by a revised price target, now set at $56—down from the previous $74. The revision stems from anticipated slower growth in adjusted funds from operations (AFFO) per share and heightened risks linked to tariff impacts.
Lineage's significant involvement in the seafood sector, a category heavily impacted by import tariffs, was a crucial factor in the downgrade. Seafood constitutes 13% of Lineage's warehouse revenue, a substantial exposure compared to the mere 2% for Americold Realty Trust (COLD, Financial), highlighting Lineage’s vulnerability to tariffs.
