Scotiabank Initiates Coverage on Leading Cold Storage Company, Americold Realty Trust

☀️Trending News

Scotiabank, a leading Canadian multinational investment bank, has recently announced the initiation of coverage on Americold Realty Trust ($NYSE:COLD), one of the largest and most trusted names in the cold storage industry. This move by Scotiabank highlights the growing interest and potential of Americold Realty Trust as a top-performing company in the market. For those who may be unfamiliar, Americold Realty Trust is a real estate investment trust (REIT) that specializes in temperature-controlled warehousing and distribution services for perishable goods. Americold serves a diverse range of industries, including food and beverage, pharmaceuticals, and foodservice. Scotiabank’s decision to initiate coverage on Americold Realty Trust is significant as it reflects the bank’s confidence in the company’s performance and future prospects. This initial coverage also provides valuable insights and analysis for investors who may be considering adding Americold Realty Trust to their portfolio. One of the key factors driving Scotiabank’s interest in Americold Realty Trust is the company’s strong financial performance. This growth can be attributed to the rising demand for cold storage services, driven by the global increase in e-commerce and online grocery shopping.

Moreover, Americold has a well-diversified customer base and a long-term lease structure, providing stability and predictability for investors. The company’s strategic location of facilities near major population centers and transportation hubs also gives it a competitive advantage in the market. In addition to its financial strength, Americold is also committed to sustainable operations and reducing its environmental impact. This aligns with Scotiabank’s focus on sustainable investing, making Americold a promising choice for socially responsible investors. With a solid financial foundation, a diverse customer base, and a focus on innovation, Americold is well-positioned for continued success in the cold storage industry. Investors looking for a stable and socially responsible addition to their portfolio should keep an eye on Americold Realty Trust.

Share Price

Scotiabank, a leading Canadian bank, has recently announced its initiation of coverage on Americold Realty Trust, a prominent cold storage company in the United States. The news has caused a buzz in the market, with investors closely monitoring the stock performance of AMERICOLD REALTY TRUST. On Thursday, the stock opened at $25.0 and closed at $24.9, showing a 0.6% increase from its previous closing price of $24.8. This positive movement in the stock price is attributed to the coverage initiation by Scotiabank, which is a testament to the potential growth and stability of Americold Realty Trust. With a strong focus on cold storage solutions, Americold Realty Trust has established itself as a leader in the industry. The company owns and operates a vast network of temperature-controlled warehouses, strategically located to serve major food producers and retailers. Their services are critical for ensuring the safe storage and transportation of perishable goods, such as fruits, vegetables, meats, and dairy products. As the demand for cold storage services continues to rise, Americold Realty Trust is well-positioned to benefit from this trend. The company has a proven track record of delivering exceptional customer service and maintaining high-quality facilities, making it a preferred choice among its clients.

Additionally, Americold Realty Trust has been actively pursuing expansion opportunities, both through acquisitions and new developments, further solidifying its position in the market. The pandemic has highlighted the importance of reliable cold storage solutions and has accelerated the adoption of online grocery shopping, further driving demand for the company’s services. In conclusion, Scotiabank’s decision to initiate coverage on Americold Realty Trust speaks volumes about the company’s potential for growth and success in the cold storage industry. With a strong financial standing and a solid business model, Americold Realty Trust is well-equipped to capitalize on the current market conditions and emerge as a leading player in the cold storage space. Investors can keep a close eye on the stock performance of AMERICOLD REALTY TRUST as it continues to make strides in the industry. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for COLD. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for COLD. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for COLD. More…

Key Ratios Snapshot

Some of the financial key ratios for COLD are shown below. More…

Analysis

After conducting an in-depth analysis on AMERICOLD REALTY TRUST, I have determined that the company has an intermediate health score of 6/10. This is based on its cashflows and debt, indicating that it may be able to pay off its debt and fund future operations. Looking at the Star Chart, we can see that AMERICOLD REALTY TRUST is strong in dividend, profitability, and medium in asset and growth. This suggests that the company has a solid track record of paying dividends to its shareholders and is profitable in its operations. Its assets are also moderately sized and the company has potential for growth. Based on our analysis, we have classified AMERICOLD REALTY TRUST as a ‘cow’ company. This type of company typically has a history of consistently paying out dividends and has sustainable cash flows. This is a good sign for investors who prioritize receiving a steady income from their investments. Investors who may be interested in AMERICOLD REALTY TRUST include those looking for stable and reliable sources of income, as well as those seeking potential for growth in the long run. The company’s strong dividend track record and potential for growth make it an attractive option for both income and growth investors. Additionally, its intermediate health score may also appeal to risk-averse investors who prioritize stability in their investments. More…

Peers

The company is the largest provider of temperature-controlled warehousing services in the United States with over 1,000 locations across 38 states. Americold’s competitors include Rayonier Inc, Dream Industrial Real Estate Investment Trust, and Morguard North American Residential Real Estate Investment Trust.

– Rayonier Inc ($NYSE:RYN)

Rayonier Inc. is a forest products company, which engages in the manufacture and sale of wood products. It operates through the following segments: Timberland, Rayonier Advanced Materials, and Forest Resources. The Timberland segment manages, leases, and sells timberlands located in the United States and New Zealand. The Rayonier Advanced Materials segment produces and sells high-purity cellulose, specialty fibers, and fluff pulp. The Forest Resources segment provides stumpage, land, and log brokerage services to third-party customers. The company was founded in 1926 and is headquartered in Jacksonville, FL.

– Dream Industrial Real Estate Investment Trust ($TSX:DIR.UN)

As of 2022, Dream Industrial Real Estate Investment Trust has a market cap of 2.71B. The company is a Canadian real estate investment trust that owns and operates a portfolio of light industrial properties across Canada. The company’s properties are primarily located in major urban centres, such as Toronto, Vancouver, and Montreal.

– Morguard North American Residential Real Estate Investment Trust ($TSX:MRG.UN)

Morguard North American Residential Real Estate Investment Trust is a real estate investment trust that owns and operates rental properties in the United States and Canada. As of December 31, 2020, the company owned and operated 1,798 rental properties with an aggregate of approximately 205,000 units.

Summary

Scotiabank has initiated coverage on Americold Realty Trust, giving the company a “sector perform” rating. The firm believes that the industrial real estate sector, specifically cold storage facilities, is likely to see strong growth in the coming years due to increasing demand for e-commerce and grocery delivery services. They also note that Americold’s portfolio of temperature-controlled facilities and its strong relationships with major food retailers position it well for future success.

However, Scotiabank also highlights potential challenges such as rising interest rates and competition from other real estate companies. Overall, their analysis suggests that Americold could be a solid investment choice for those interested in the industrial real estate sector.