ProLogis stock price target raised to $109 from $105 at Mizuho

Investing.com - Mizuho (NYSE:MFG) has raised its price target on ProLogis (NYSE:PLD) to $109.00 from $105.00 while maintaining a Neutral rating on the industrial real estate investment trust. The company, a prominent player in the Industrial REITs industry with a market cap of $102 billion, currently trades at $108.02 and offers a 3.74% dividend yield, having maintained dividend payments for 15 consecutive years.

The price target increase represents a modest 3.8% upward revision for the warehouse and logistics property owner, which is scheduled to be the first REIT to report earnings this season.

Mizuho’s analysis focuses on several key metrics for ProLogis, including occupancy trajectory, which the company has indicated may experience a better-than-expected first-half dip.

The investment firm also highlighted development starts, margins, and potential changes to ProLogis’ funds from operations (FFO) guidance as important factors in its evaluation, noting that the consensus view expects the current guidance to remain intact.

Mizuho applied a 19x multiple to its 2025 estimated FFO for ProLogis, slightly above current levels, citing the company’s "likely positive commentary on its ancillary business segments" as justification for the premium valuation.

In other recent news, Prologis reported its first-quarter 2025 earnings, revealing a slight miss on earnings per share (EPS) expectations, with actual EPS at $0.63 compared to a forecast of $0.64. However, revenue exceeded expectations, reaching $2.14 billion against the anticipated $1.96 billion. Analysts from UBS have maintained a Buy rating with a $106 price target for Prologis, citing the resilience of the company’s business model. Meanwhile, Evercore ISI adjusted their price target for Prologis to $106, down from $111, while maintaining an In Line rating. This adjustment followed the company’s first-quarter results, which included a core Funds From Operations (FFO) of $1.42, surpassing both Evercore ISI’s estimate of $1.37 and the consensus of $1.38. Prologis has decided to maintain its full-year 2025 core FFO guidance range of $5.65 to $5.81. Additionally, Prologis appointed Sarah Slusser, an energy sector veteran, to its board of directors, indicating a strategic emphasis on energy solutions. These developments highlight Prologis’ focus on strong operational performance and strategic initiatives amid global economic uncertainties.

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