Americold: The Cold Storage Downturn Could Be Nearing Its End

IWA Research 3.55K Followers Follow Summary Americold Realty Trust remains a Buy, trading at a significant discount to intrinsic value amid macro risks. COLD’s Q2 saw revenue and occupancy growth, balance sheet strengthening via a $1.3B JV, and AFFO guidance raised to $1.26–$1.32/share. Cost-saving initiatives and selective divestitures are underway, with a 6x leverage target and a 6.5% dividend yield supported by a ~71% estimated payout ratio. Industry stabilization and supply-demand tailwinds could drive AFFO growth, but operational exposure and macro headwinds warrant a conservative approach. Unaihuiziphotography/iStock via Getty Images Introduction In my previous coverage of Americold Realty Trust ( COLD ), I reiterated its Buy rating, as the valuation continued to imply an attractive risk-reward while the recent deal helped strengthen its balance sheet, all while This article was written by IWA Research 3.55K Followers Follow I've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in COLD over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.