On Monday, RBC Capital Markets revised its outlook on ProLogis (NYSE:PLD), a global leader in logistics real estate, following the company's first-quarter results for 2024. The firm lowered its price target on the stock to $124 from the previous $145, while maintaining an Outperform rating.
ProLogis reported a quarter that indicated a near-term slowdown in leasing activity. Despite this, RBC Capital's analyst expressed a continued positive view on the medium-term prospects for the company. In response to the recent earnings report, the firm has adjusted its earnings estimates downward.
The analyst from RBC Capital noted that the reduction in the price target to $124 per share takes into account the challenges highlighted in the first-quarter results. The firm believes that the current market price of ProLogis shares already reflects these near-term concerns, which is why the Outperform rating remains in place despite the lower price target.
The update from RBC Capital comes after ProLogis' shares experienced a sell-off following the earnings report. The firm suggests that this sell-off has aligned the stock's valuation with the updated expectations and the revised price target.
In summary, while acknowledging the short-term challenges faced by ProLogis, RBC Capital Markets continues to see the stock favorably over the medium term. The firm's Outperform rating stands, indicating their belief in the company's potential for above-average returns.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.