Truist Raises Price Target#
Truist Securities has increased its price target for Prologis stock (NYSE: PLD) from $139 to $154, while maintaining a Buy rating on this industrial real estate investment trust (REIT). This adjustment reflects a positive outlook based on the company's financial performance.
Funds from Operations (FFO) Estimates#
The firm has revised its 2026 estimate for funds from operations (FFO) to $6.77 per share, up from $6.08 per share. FFO is a key metric used to measure a REIT's profitability, as it accounts for earnings generated from property operations. The increase is largely due to net gains from the sale of development properties and land recorded in the first quarter of 2026. When excluding these one-time gains, the normalized FFO estimate rises to $6.19 per share, which aligns with the company's guidance range of $6.07 to $6.23 per share and exceeds the consensus estimate of $6.16 per share.
Growth Projections#
Truist also raised its 2027 FFO estimate to $6.72 per share, surpassing the consensus of $6.62 per share. This indicates a projected growth rate of 6.6% in normalized FFO for 2026, followed by 8.5% growth in 2027. The firm anticipates an average annual growth rate of 7.6% in normalized FFO per share from 2026 through 2031.
Recent Company Developments#
Prologis has seen its stock rise by 40% over the past year, compared to a 10% increase for REITs overall. The company currently trades at $142.34, close to its 52-week high of $145.44, with a market capitalization of $135.8 billion. Recently, Prologis announced the pricing of $1.25 billion in senior unsecured notes to support general corporate purposes, including potential debt repayment. Analysts from various firms have also adjusted their price targets for Prologis, reflecting a favorable outlook based on the company's recent performance.