Lineage views job cuts as ‘non-event,’ says Evercore ISI

Evercore ISI analyst says Steve Sakwa the Wall Street Journal reported last night that Lineage (LINE) is reducing headcount as part of a review of our operations, but the details were very limited and the scope of the cuts were underdetermined. The post-news selloff seems to be prompted by investors who are reading into these “cuts” as a way to perhaps compensate for sagging sales growth, which clearly impacted occupancy in 2024, the analyst tells investors in a research note. However, management told Evercore the job cuts are a “non-event” that was part of normal job reductions and not in response to weakening operating trends. With Lineage not reporting Q4 results until late February, there is little to no news investors will get on the operating front to quell investor fears in the near-term, the firm contends. It has an In-Line rating on the shares with a $71 price target