Prologis, Inc. (PLD), headquartered in San Francisco, California, is the world’s largest owner, operator, and developer of industrial real estate. With a market cap of $99.59 billion, Prologis is a leading logistics and supply chain infrastructure player, renowned for its extensive portfolio of high-quality warehouses and distribution centers. Serving a wide range of customers, including e-commerce giants and global manufacturers, Prologis is pivotal in facilitating efficient global trade and commerce.
Prologis shares significantly underperformed the broader market over the past year. The REIT has declined 13.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 24.5%. In 2024 alone, the REIT has lost 19.3%, compared to SPX's 9.8% gains on a YTD basis.
Narrowing the focus, PLD’s underperformance is also apparent in comparison to the Pacer Benchmark Industrial Real Estate SCTR ETF (INDS). The exchange-traded fund has declined 11.8% over the past year, which is less than the loss experienced by PLD during the same period.
On Apr. 17, PLD reported its Q1 results, with funds from operations (FFO) of $1.22 billion, or $1.28 per share, in line with analysts' expectations. However, the REIT declined more than 7% on the earnings release day.
For the current fiscal year, ending in December, analysts expect PLD’s FFO to decline by 3.4% year over year to $5.42 on a diluted basis. The company's surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 22 analysts covering PLD stock, the consensus rating is a “Strong Buy.” That’s based on 15 “Strong Buy” ratings, two “Moderate Buys,” and five “Holds.”
This configuration is slightly less bullish than three months ago, with 17 suggesting a “Strong Buy.”
On May 6, RBC Capital analyst Michael Carroll maintained a “Buy” rating on Prologis with a price target of $124.00, implying a potential upside of 15.3% from current levels.
The mean price target of $132 represents a 22.7% premium to PLD’s current price levels. The Street-high price target of $154 suggests an upside potential of 43.2%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
