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Investing.com - KeyBanc Capital Markets maintained its Sector Weight rating on Prologis (NYSE:PLD), a $119 billion market cap industrial REIT trading near its 52-week high of $125.05, citing early signs of recovery in the industrial real estate market.
The firm noted that Prologis’ recent results modestly exceeded expectations, with revenue growing 10.45% year-over-year and management’s upbeat tone and commentary boosting optimism for a fundamental inflection in the industrial property sector.
KeyBanc observed improving market conditions, reporting that tenant traffic is increasing, leasing volumes improved from the second quarter, and leasing cadence accelerated as customer sentiment strengthened.
The research firm highlighted that Prologis’ data center platform continues to gain momentum, supported by strong demand and secured power capacity, while external growth may accelerate in the near term through both development starts and acquisitions.
Despite these positive indicators, KeyBanc maintained its neutral stance following Prologis’ 355 basis points of outperformance versus peers since earnings, suggesting shares will likely trade in line with the sector given current valuation levels.
In other recent news, ProLogis has reported strong third-quarter 2025 results that have led to several positive analyst actions. UBS reiterated its Buy rating with a price target of $137, noting an inflection point in the industrial warehouse market and significant leasing activity. Truist Securities also raised its price target to $131, highlighting that ProLogis exceeded expectations in normalized funds from operations by $0.05 per share. Freedom Capital Markets increased its price target to $134, citing record leasing activity and an improved full-year forecast. BMO Capital upgraded ProLogis from Underperform to Market Perform, driven by a strategic shift in its data center business. Additionally, UBS raised its price target from $120 to $137, emphasizing the growth potential in ProLogis’s data center operations. These developments reflect a broadly optimistic outlook among analysts for ProLogis, with a focus on its leasing success and strategic initiatives.
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