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Lineage Shows Early Recovery Signs as Demand Stabilizes, Morgan Stanley Says

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Lineage (LINE) is showing "early signs" of recovery as demand in the cold-storage industry stabilizes, supply growth moderates and cost-cutting initiatives begin to take hold, Morgan Stanley said in a report Monday.

The investment bank cited improving US Department of Agriculture cold storage inventory data, easing inventory destocking, slowing new supply deliveries and signs of occupancy stabilization as signs that industry conditions are improving.

The analysts also highlighted Lineage's strong customer relationships, and its logistics platform and portfolio quality as competitive advantages that could help the company gain market share.

However, "near-term visibility" for a sustained recovery "remains limited" due to excess industry capacity, trade uncertainty and below-average adjusted funds from operations growth, Morgan Stanley said.

The firm expects demand and supply conditions to remain key areas of focus in the coming quarters, with upside potential if industry volumes recover more quickly than expected in the second half of 2026, the report said.

Morgan Stanley reiterated an equal weight rating on Lineage and raised its price target to $47 from $39.

Price: $43.64, Change: $-0.40, Percent Change: -0.90%

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