Prologis: Strong Market Position and Growth Potential Drive Buy Rating

In a report released today, Dale Lai from DBS maintained a Buy rating on Prologis (PLD – Research Report), with a price target of $148.00.

Dale Lai has given his Buy rating due to a combination of factors that highlight Prologis’s strong market position and growth potential. Prologis is a global leader in logistics real estate, with a vast portfolio spanning over 1.2 billion square feet across more than 100 markets in 20 countries. This extensive reach allows Prologis to leverage its scale and customer-centric approach to enhance retention rates and expand alongside its clients.
Additionally, Prologis is investing in long-term growth drivers, such as energy and mobility businesses, strategic capital AUM growth, and the development of logistics facilities from its existing land bank. These initiatives are expected to generate significant revenue and value in the coming years. Despite uncertainties in interest rates and geopolitical factors, the anticipated decline in supply over the next two years is likely to support occupancy rates, while market rents are projected to grow 4-6% annually, contributing to a compounded core FFO growth of 9-11% per annum.

Lai covers the Real Estate sector, focusing on stocks such as Prologis, Keppel REIT, and CapitaLand Ascendas REIT. According to TipRanks, Lai has an average return of -3.4% and a 38.83% success rate on recommended stocks.

In another report released on May 19, Wells Fargo also maintained a Buy rating on the stock with a $119.00 price target.