Analyst John Kim of BMO Capital maintained a Hold rating on Plymouth Industrial Reit, reducing the price target to $22.00.
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John Kim has given his Hold rating due to a combination of factors surrounding Plymouth Industrial Reit’s recent merger agreement. The company has entered into a definitive merger agreement with Makarora Management and Ares Management, offering $22.00 per share in an all-cash transaction. This offer is lower than a previous non-binding offer from Sixth Street, which was $24.10 per share, creating some uncertainty about the valuation.
Despite the offer being a 50% premium to the stock’s price on August 18, 2025, it represents a slight discount to the closing price on October 24. The agreement includes a 30-day go-shop period, allowing PLYM to seek better offers, which adds a layer of uncertainty. Additionally, the company will only pay dividends as necessary to maintain its REIT status, indicating potential changes in dividend policy. These factors contribute to the Hold rating, as they present both opportunities and risks for the stock’s future performance.
In another report released on October 23, Robert W. Baird also downgraded the stock to a Hold with a $24.00 price target.