- Prologis (PLD, Financial) shares see a sharp decline after a downgrade from Scotiabank.
- Analysts predict an average price target of $129.84, indicating a potential upside.
- GuruFocus estimates suggest a 50.17% upside based on the GF Value.
Shares of Prologis Inc. (NYSE: PLD) recently plunged to a five-year low following a downgrade by Scotiabank. The investment bank adjusted its rating for the industrial real estate investment trust (REIT) to "Sector Underweight" from "Sector Overweight." This shift in sentiment was accompanied by a significant reduction in the price target, from $133 to $97, reflecting growing concerns over the potential for diminishing earnings growth and a less robust recovery in the market.
Wall Street Analysts Forecast
The outlook from Wall Street analysts offers a potentially positive horizon for Prologis investors. Based on the recent forecasts by 19 financial analysts, the average 12-month price target for Prologis stands at $129.84. Projections range widely, with the most optimistic estimate at $150.00 per share and the most conservative at $105.00. This average target suggests a substantial upside of 36.57% from the current trading price of $95.07. For a more comprehensive analysis, please visit the Prologis Inc (PLD, Financial) Forecast page.
Brokerage sentiment remains favorable for Prologis. Among 24 surveyed brokerage firms, the consensus recommendation places Prologis at an "Outperform" with an average rating of 2.1. This scale positions Prologis between a "Buy" and a "Hold" in terms of overall sentiment, with the scale ranging from 1 (Strong Buy) to 5 (Sell).
Understanding the GF Value Estimate
Delving into GuruFocus proprietary metrics offers a more detailed perspective on Prologis' valuation. The estimated GF Value for Prologis in one year's time is projected at $142.77. This figure suggests a potential upside of 50.17% from the current share price of $95.07. The GF Value represents GuruFocus' assessment of the fair market value, derived from historical price multiples, past business growth trends, and future business performance estimates. For more insights, explore the Prologis Inc (PLD, Financial) Summary page.
