Asia tech stocks slide tracking Wall St losses amid AI doubts, govt. uncertainty
Investing.com -- Mizuho upgraded Prologis (NYSE:PLD) to Outperform from Neutral, saying the industrial REIT is set up for tactical outperformance over the next six months after lagging peers recently.
The broker said improving macro conditions, signs of occupancy upside into 2026 and reduced execution risk were among the reasons for the shift in view, its first positive call on the industrial REIT sector in more than two years.
Prologis shares have trailed the broader REIT group by about 400 basis points in the past month and now trade at a 5% discount to the sector, Mizuho (NYSE:MFG) noted.
The firm set a $118 price target, implying 12% upside, based on a 20x multiple of 2025 funds from operations, a modest premium to the REIT group due to lower risk and a slightly better growth outlook.
Analysts said proposals for new leases jumped to 136 million square feet in Q2 2025 from 108 million in Q1, suggesting potential occupancy improvement into 2026.
Leasing market share has also been rising, while lease expirations in the second half of 2025 are the lowest in years.
Mizuho said Prologis’ size, geographic diversity and exposure to large tenants position it better than peers, and investor interest could pick up once rates start to fall.
While the firm remains neutral on the broader industrial REIT segment due to muted rent growth and supply risks, it sees Prologis as a tactical buy given the near-term rebound potential.