UBS raises ProLogis stock price target to $137, maintains Buy rating

Published 28/01/2025, 16:54
UBS raises ProLogis stock price target to $137, maintains Buy rating

ProLogis (NYSE:PLD) also reported a year-over-year increase of 17% in its leasing pipeline, suggesting a strengthening demand for its logistics facilities. This uptick is seen as a positive sign for the company’s future revenue prospects and operational performance. The company maintains a healthy 76% gross profit margin and offers investors a 3.2% dividend yield, having raised its dividend for 11 consecutive years.Moreover, ProLogis pointed out the significant value created from the development and subsequent sale of its Elk Grove data center. The transaction resulted in a promote fee of $112 million, underscoring the company’s ability to generate additional income through strategic property developments and sales.The raised price target from UBS reflects confidence in ProLogis’ strategic initiatives and the robust fundamentals of the industrial real estate market. The company’s recent developments and financial outcomes have contributed to a more optimistic outlook from analysts and investors alike. InvestingPro analysis indicates the company maintains a GOOD financial health score, though it’s currently trading above its calculated Fair Value. Subscribers can access 8 additional ProTips and comprehensive valuation metrics in the Pro Research Report.

During the call, ProLogis highlighted several positive indicators for the leasing environment, which are starting to emerge. The company noted a normalization of supply and demand dynamics in the market. Additionally, there was a sense of optimism among market participants regarding potential growth and deregulation. This optimism is reflected in the stock’s strong performance, with InvestingPro showing a 14.7% year-to-date return, though analysts anticipate a slight sales decline in the current year.

ProLogis also reported a year-over-year increase of 17% in its leasing pipeline, suggesting a strengthening demand for its logistics facilities. This uptick is seen as a positive sign for the company’s future revenue prospects and operational performance.

Moreover, ProLogis pointed out the significant value created from the development and subsequent sale of its Elk Grove data center. The transaction resulted in a promote fee of $112 million, underscoring the company’s ability to generate additional income through strategic property developments and sales.

The raised price target from UBS reflects confidence in ProLogis’ strategic initiatives and the robust fundamentals of the industrial real estate market. The company’s recent developments and financial outcomes have contributed to a more optimistic outlook from analysts and investors alike.

In other recent news, ProLogis, a global logistics real estate company, has seen a flurry of analyst activity. RBC Capital Markets has increased the price target on ProLogis shares to $128, maintaining a Sector Perform rating. This adjustment follows ProLogis’ fourth-quarter earnings release for 2024, which was in line with expectations. Truist Securities, on the other hand, raised their price target to $123 while maintaining a Buy rating, based on a refined valuation from discounted cash flow analysis and net asset value estimates.

BTIG has held its Buy rating on ProLogis stock and kept the price target at $134, citing the company’s strong fourth-quarter performance and a successful data center platform which generated approximately $712 million. Citi also maintained a Buy rating on ProLogis shares and reiterated a $150 price target, despite the company’s initial 2025 Funds from Operations guidance being 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. These are the recent developments regarding ProLogis.

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