Update shared on 08 Nov 2025
Fair value Increased 1.25%Analysts have modestly raised their fair value estimate for Prologis to $129.65, citing improved demand outlook, positive post-earnings momentum, and updated models reflecting recent industry trends.
Analyst Commentary
Bullish Takeaways- Bullish analysts have noted recent price target increases, highlighting upward adjustments in response to a strong third quarter and improved demand outlook.
- Some forecast minimal downside risk to 2026 to 2027 financial metrics, attributing this to healthy occupancy guidance, robust mark-to-market rental growth, and increased development activity.
- Upgrades in sector ratings reflect rising confidence in industrial demand trends, supported by favorable industry feedback and ongoing leasing momentum.
- Valuations appear attractive based on current trading levels relative to the broader REIT sector, with improving macroeconomic conditions seen as a potential catalyst for outperformance in the coming months.
- Bearish analysts have modestly lowered price targets, citing cautious updates to financial models amid evolving conditions in the U.S. industrial real estate space.
- While the outlook remains positive, some express reservations about the pace of growth, suggesting a need to balance earnings momentum with longer-term challenges facing the sector.
- Concerns linger regarding understated risks to forward guidance, prompting some to assume more conservative estimates in their valuation frameworks.
What's in the News
- Prologis and EV Realty announced a new collaboration to link electric vehicle charging sites across major California freight corridors. The initiative aims to streamline access for commercial fleet operators and support zero-emission operations. The first hubs are set to open later this year in Vernon and San Bernardino, with further expansion planned. (Key Developments)
- Prologis has raised its earnings guidance for 2025, now expecting diluted earnings per share attributable to common stockholders in the range of $3.40 to $3.50, up from the previous range of $3.00 to $3.15. (Key Developments)
- The company completed the repurchase of 539,000 shares for $34.85 million under its ongoing buyback program, with no shares repurchased in the most recent period from July 1, 2025, to September 30, 2025. (Key Developments)
Valuation Changes
- Fair Value Estimate has risen slightly, moving from $128.05 to $129.65 per share.
- Discount Rate increased from 8.34% to 8.85%, indicating a modestly higher required return.
- Revenue Growth Projection edged up, moving from 3.36% to 3.42%.
- Net Profit Margin decreased marginally, shifting from 35.08% to 34.98%.
- Future P/E Ratio has increased from 43.24x to 44.44x, reflecting higher valuation expectations.
Disclaimer
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