Before Lineage Inc. (NASDAQ:LINE)’s recent IPO, most investors likely never considered adding a temperature-controlled warehouse REIT to their portfolios. However, in late July, the Michigan-based company surprised the market by raising $4.4 billion through its IPO, selling 57 million shares at $78 each.
This gave Lineage Inc. (NASDAQ:LINE) a valuation of $18 billion, making it the largest public offering since Arm Holdings’ $4.8 billion IPO in 2023. Lineage has quickly become a major player in the cold-storage industry, operating 480 temperature-controlled warehouses across the U.S., Europe, and Asia.
Its stock saw a moderate rise to $82 per share in early September, and analysts are optimistic about its future. J.P. Morgan gave the stock an “overweight” rating with a one-year target price of $93, while Truist analysts issued a “buy” rating with a $94 target.
Clearly, Wall Street sees significant potential in Lineage Inc. (NASDAQ:LINE), one of the largest IPOs of the year. The company’s network includes over 480 facilities across North America, Europe, and Asia-Pacific, with a total capacity of 3 billion cubic feet.
Lineage Inc. (NASDAQ:LINE)’s focus on integrating technology with end-to-end supply chain solutions, combined with its sustainability initiatives, gives it a competitive advantage in minimizing supply chain waste and improving distribution efficiency.
Although its Q2 2024 earnings fell short of analyst expectations, with a reported EPS of -$1.01 and a net loss of $229.4 million, the company’s revenue reached $5.33 billion, driven by growing demand for cold storage solutions.
Despite these short-term challenges, analysts forecast strong long-term growth for Lineage Inc. (NASDAQ:LINE), with earnings expected to grow by over 70% annually.
Furthermore, its stock price is considered undervalued, trading around 22% below its estimated fair value, presenting a potential opportunity for investors.
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