ProLogis stock outlook positive as UBS reiterates Buy rating on market inflection

Published 21/10/2025, 15:26
ProLogis stock outlook positive as UBS reiterates Buy rating on market inflection

Investing.com - UBS has reiterated a Buy rating and $137.00 price target on ProLogis (NYSE:PLD) following discussions with the company’s CFO about its third-quarter 2025 results. The stock, currently trading at $126.55, is near its 52-week high and has delivered an impressive 28.14% return over the past six months, though InvestingPro analysis suggests the shares are trading above their Fair Value.

The industrial warehouse market has likely reached an inflection point after three consecutive quarters of strong total leasing, which is up 32% year-over-year to date, according to UBS. Both the first and third quarters of 2025 each demonstrated elevated new leasing of approximately 20 million square feet.

ProLogis’ leasing pipeline remains near record highs at 115 million square feet, indicating continued strong demand for industrial warehouse space. This robust pipeline supports UBS’s positive outlook on the company’s growth trajectory.

The company has also expanded its data center opportunity, procuring an additional 1.5 gigawatts of power in advanced stages during the third quarter of 2025, bringing its impressive total to 5.2 gigawatts. This diversification into data centers represents a significant growth avenue for ProLogis.

ProLogis reaffirmed that its build-to-suit development pipeline remains robust, with ongoing conversations for new deals of approximately 30 million square feet. The company expects annual development starts to eventually increase to $4-$5 billion, which could add approximately 150 basis points of earnings growth.

In other recent news, Prologis reported its third-quarter 2025 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.82, compared to the forecasted $0.67. The company also exceeded revenue forecasts, reporting $2.05 billion against the expected $2.03 billion. Following these strong results, Truist Securities raised its price target on Prologis to $131, maintaining a Buy rating. UBS also increased its price target to $137, citing advancements in Prologis’ industrial warehouse fundamentals and data center opportunities. Freedom Capital Markets raised its price target to $134, highlighting record leasing activity and an optimistic full-year forecast. Additionally, BMO Capital upgraded Prologis from Underperform to Market Perform due to a strategic shift in its data center business. These developments reflect a positive outlook from various analyst firms on Prologis’ recent performance and strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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