Truist Financial analyst Ki Bin Kim has reiterated their bullish stance on PLD stock, giving a Buy rating on April 22.
Ki Bin Kim’s rating is based on a combination of factors that highlight Prologis’s potential for growth despite prevailing economic uncertainties. The company’s management has emphasized the positive elements within their control, such as a potential 25% rent mark-to-market upside and promising opportunities in Data Center development. These factors are expected to provide a buffer against macroeconomic challenges and trade disputes.
Furthermore, Prologis has conducted stress tests using historical data from the Global Financial Crisis, which suggest that the lower end of their Funds From Operations per share guidance range is achievable. This scenario assumes a decrease in occupancy and market rents, alongside an increase in bad debt. Such resilience in financial projections underlines the company’s robust position, reinforcing the Buy rating given by Ki Bin Kim.
In another report released on April 22, J.P. Morgan also maintained a Buy rating on the stock with a $115.00 price target.