RBC Capital lifts ProLogis stock price target to $128

On Monday, RBC Capital Markets analyst Michael Carroll adjusted the price target on ProLogis shares, traded on the New York Stock Exchange (NYSE:PLD), increasing it to $128 from the previous target of $125. The firm has maintained a Sector Perform rating on the stock. With a market capitalization of $111 billion, ProLogis has shown strong momentum, gaining 8.6% in the past week. According to InvestingPro data, analyst price targets for the stock range from $104 to $150.

The revision follows ProLogis' fourth-quarter earnings release for the year 2024. The company reported results that were consistent with expectations and provided guidance within an anticipated range. However, what stood out was the management's optimistic tone regarding the near-term prospects for the industrial real estate market. InvestingPro's analysis shows the company maintains a GOOD financial health score, with particularly strong metrics in profit and cash flow management. The company also offers a 3.2% dividend yield and has maintained dividend payments for 14 consecutive years.

Carroll noted that discussions with customers and the leasing pipeline for ProLogis have seen a positive shift following the election. This change in sentiment is supported by a belief that demand for industrial spaces will see a resurgence in the second half of 2025. The increased price target reflects this optimism, factoring in lower capitalization rates and improved private market valuations.

The analyst's commentary highlighted the potential for industrial market fundamentals to be reaching a turning point, with recovery on the horizon. The update in estimates and outlook is a direct response to the latest earnings data and management's forward-looking statements.

ProLogis management's confidence is seen as a significant indicator of the company's future performance, given their proximity to market activities and customer behaviors. The firm's unchanged rating indicates that while there may be positive developments, the stock is currently viewed as appropriately valued within its sector.

In other recent news, ProLogis, a global logistics real estate company, has seen various updates from analysts. Truist Securities raised the price target to $123 while maintaining a Buy rating. This change was based on a refined valuation from discounted cash flow analysis and net asset value estimates. Meanwhile, the 2025 and 2026 forecasted funds from operations per share were slightly decreased due to lower than expected net external growth.

BTIG, on the other hand, held its Buy rating on ProLogis stock and kept the price target at $134. The company's strong fourth-quarter performance and a successful data center platform, which generated approximately $712 million, contributed to this decision.

Citi also maintained a Buy rating on ProLogis shares and reiterated a $150 price target. The company's initial 2025 Funds from Operations guidance was slightly below the Factset consensus and Citi's own estimate.

Goldman Sachs kept their Neutral rating on ProLogis shares, with a steady price target of $119. The company's guidance for 2025 suggests a 4.5% year-over-year growth in core Funds From Operations per Share.

Lastly, JPMorgan maintained a positive stance on ProLogis stock with a $131 target. The company's performance and management's optimistic outlook on the leasing environment were noted. These are the recent developments regarding ProLogis.

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