Mizuho Upgrades Prologis to Outperform, Raises PT to $118 from $109

Mizuho Upgrades Prologis to Outperform, Raises PT to $118 from $109

Mizuho Financial Group has upgraded its rating for Prologis (NYSE: PLD) from Neutral to Outperform, raising its price target from $109 to $118. This move reflects a more supportive macro environment and a lowered risk profile specific to Prologis [1].

The upgrade comes after Prologis shares have underperformed the broader REIT group by approximately 400 basis points over the past 30 days, presenting a potential tactical opportunity for investors. The new price target represents a 12% upside potential and assumes a forward multiple at a modest premium to REITs, with Prologis currently trading at a 5% discount to the sector [1].

Mizuho's decision is based on Prologis' strong operational efficiency, demonstrated by its revenue growth of 10% in the last twelve months and a gross profit margin of 76%. Despite the upgrade, Mizuho maintains a neutral stance on the industrial REIT sub-sector overall, citing concerns about sub-par rent growth, potential supply risks, and slow tenant decision-making that could impact medium-term growth [1].

In other recent news, Prologis reported its second-quarter 2025 earnings, showing a mixed performance. The company posted an earnings per share of $0.61, which fell short of the forecasted $0.69. However, revenue surpassed expectations, reaching $2.04 billion compared to the anticipated $2.01 billion. UBS maintained its Buy rating for Prologis, setting a price target of $120, citing the strong quarterly performance and a substantial leasing pipeline. Meanwhile, Citi lowered its price target for Prologis to $140 from $150, though it upheld its Buy rating, attributing the adjustment to trade policy uncertainty. KeyBanc reiterated its Sector Weight rating, noting that Prologis’ quarterly results exceeded expectations, despite a slightly slower growth forecast for the latter half of 2025 [2].

References:
[1] https://www.ainvest.com/news/mizuho-financial-group-raises-2025-guidance-surpassing-estimates-strong-q1-results-2508/
[2] https://www.investing.com/news/analyst-ratings/prologis-stock-rating-upgraded-by-mizuho-on-improved-risk-profile-93CH-4199138