11:40 AM EDT, 05/06/2025 (MT Newswires) -- Lineage (LINE) faces persistent revenue growth difficulties, weak occupancy trends, and conservative supply chain investments amid broader economic uncertainty, BofA Securities said in a note Tuesday.

The firm said it is taking a more cautious stance, particularly after Lineage reported a 7.9% decline in Q1 net operating income and revenue growth of -4.2%, falling short of projections.

The brokerage also lowered the company's adjusted funds from operations estimates for 2025 and 2026, citing declining occupancy rates, subdued throughput volumes, and a lack of pricing power across storage and services. Updated expectations now assume 2025 throughput will decline 1.6%, with a slight rebound of 0.3% in 2026, according to the note.

Although Lineage has upheld its 2025 AFFO guidance, partly backed by acquisitions such as the Tyson Foods ( TSN ) deal, BofA analysts said they remain cautious due to limited visibility and customers holding lean inventories in a tariff-affected market.

BofA downgraded Lineage to neutral from buy, and lowered its price target to $49 from $70.

"While [Lineage] has underperformed, we believe Neutral is most appropriate until there is evidence of occupancy stabilization and improvement in [net operating income] trends," BofA said.

Shares of Lineage were down 2.5% in recent trading Tuesday.

Price: 43.19, Change: -1.10, Percent Change: -2.47