On Tuesday, Citi updated its model for ProLogis (NYSE: NYSE:PLD), a logistics real estate company, leading to an increase in their price target from $145.00 to $150.00. The firm has maintained a Buy rating on the stock.
The revision in the price target comes after considering ProLogis's second-quarter results and recent capital market activities. Citi's updated model reflects a slight increase in the estimated 2024 funds from operations (FFO) from $5.41 to $5.42.
The adjustments made by Citi are based on recent debt issuances by ProLogis and an updated outlook for the company's improving fundamentals. These factors have contributed to the analyst's decision to raise the price target.
The new price target of $150.00 is set at 32.5 times the estimated adjusted funds from operations (AFFO) for the year 2025. This target is based on Citi's increased estimate for ProLogis's 2025 AFFO.
In other recent news, ProLogis, a global leader in logistics real estate, has experienced notable developments. The company issued $1.1 billion in new debt securities, consisting of two sets of notes due in 2035 and 2054. The proceeds from this offering are intended for general corporate purposes, including repaying borrowings under global lines of credit.
In terms of analyst evaluations, Argus increased ProLogis' price target from $120 to $135, maintaining a Buy rating. Evercore ISI also raised its shares target to $123.00, while BMO Capital maintained a Market Perform rating with a steady price target of $115.00. Mizuho Securities, however, reduced its price target to $120, reflecting a modest downshift in core growth expectations for the coming years.
These developments come alongside ProLogis' declaration of a dividend of $0.96 per share on its common stock and a dividend of $1.0675 per share on the 8.54% Series Q Cumulative Redeemable Preferred Stock. These recent events underline the ongoing adjustments in the company's financial outlook amidst evolving market conditions.
InvestingPro Insights
ProLogis's recent performance and Citi's optimistic outlook align with some of the InvestingPro data metrics. The company's market capitalization stands robust at $118.25 billion, and the stock has experienced a strong return over the last month, rising by 15.78%. Additionally, ProLogis has maintained a consistent dividend growth, with the last twelve months showing an increase of 10.34%, underscoring the firm's commitment to returning value to shareholders.
InvestingPro Tips suggest that ProLogis has raised its dividend for 14 consecutive years, reflecting a stable and shareholder-friendly policy. Moreover, the company is seen as a significant player in the Industrial REITs industry, which may be driving investor confidence. For readers looking to delve deeper into ProLogis's financials and performance metrics, there are additional InvestingPro Tips available, offering a comprehensive analysis of the company's market position and future prospects.
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