John Kim, an analyst from BMO Capital, reiterated the Sell rating on Prologis (PLD – Research Report). The associated price target was lowered to $95.00.
John Kim has given his Sell rating due to a combination of factors impacting Prologis’s financial outlook. One of the primary reasons is the company’s maintenance of its 2025 Core Funds From Operations per share (FFOps) guidance range, which was achieved even under a stress-test scenario similar to the Global Financial Crisis (GFC). However, Kim believes that this guidance was supported by a strong first quarter in 2025 and conservative initial estimates, with a more significant impact expected on 2026 earnings.
Additionally, Prologis’s shares underwent a notable multiple contraction during the GFC, and while a repeat of such a swing is considered unlikely, the current market uncertainty contributes to the cautious outlook. As a result, Kim reiterates an Underperform rating with a target price of $95, adjusting the 2026 Core FFOps estimate down by 1.3%, which is 2.8% below the Street’s expectations, to $6.00.
Kim covers the Real Estate sector, focusing on stocks such as Eastgroup Properties, Prologis, and Federal Realty. According to TipRanks, Kim has an average return of -0.3% and a 45.47% success rate on recommended stocks.
In another report released on April 7, Scotiabank also downgraded the stock to a Sell with a $97.00 price target.