Prologis: Positioned for a New Industrial Upcycle with Strengthening Fundamentals and High-Value Growth Platforms

Bank of America Securities analyst Samir Khanal maintained a Buy rating on Prologis today and set a price target of $147.00.

Samir Khanal has given his Buy rating due to a combination of factors that signal Prologis is well positioned at the beginning of a new upcycle in industrial real estate. He highlights that key operating metrics are improving, with vacancies stabilizing and rental rates starting to trend upward after a soft patch, and notes that Prologis has delivered multiple quarters of very strong leasing activity outside of a tariff-impacted period. The company’s near-record leasing pipeline of roughly 125 million square feet, supported by structural growth drivers such as e-commerce and faster delivery expectations, underpins his confidence in sustained demand for Prologis’s assets.

Khanal also points to an increasingly landlord-friendly supply-demand balance, with net absorption expected to rise in 2026, vacancies projected to tick down, and Prologis’s occupancy anticipated to improve further. He underscores that international markets, particularly Latin America, are outperforming the U.S., and that key regions like Southern California—and especially Prologis’s stronger Inland Empire West portfolio—appear close to an inflection point. In addition, Prologis’s strategy to expand its third-party strategic capital platform and to monetize a multibillion-dollar opportunity in data center development, while using joint ventures and funds to preserve its balance sheet and credit quality, provides incremental fee income, diversification, and value creation potential that, in his view, supports maintaining a Buy rating and a price objective above the current share price.

In another report released on January 26, Truist Financial also maintained a Buy rating on the stock with a $139.00 price target.