Oppenheimer Issues a Buy Rating on Prologis

By Austin Angelo

Oppenheimer analyst Steve Manaker reiterated a Buy rating on Prologis (NYSE: PLD) yesterday and set a price target of $57. The company’s shares closed yesterday at $54.56.

Manaker observed:

“We maintain our Outperform. We believe PLD should be able to grow earnings at a very attractive rate (7.6% in 2017 and 5.8% in 2018). And given the continued strength of the industrial market and the company’s focus on bringing expiring space to current market rents, we believe there is a very high probability that PLD achieves this growth, Industrial market demand remains strong from ecommerce and the last-mile build- out. And while some markets might supply growth greater than demand in 2018, we don’t expect this to impact market rents given the low current vacancy numbers.”

According to TipRanks.com, Manaker is a top 100 analyst with an average return of 14.0% and a 80.0% success rate. Manaker covers the Financial sector, focusing on stocks such as Preferred Apartment Communities, General Growth Properties Inc, and Bluerock Residential Growth.

Prologis has an analyst consensus of Strong Buy, with a price target consensus of $55.50.

Based on Prologis’ latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $620 million and quarterly net profit of $442 million. In comparison, last year the company earned revenue of $606 million and had a net profit of $210 million.

Based on the recent corporate insider activity of 24 insiders, corporate insider sentiment is negative on the stock. Last month, Edward Nekritz, the Chief Legal Off. of PLD sold 84,434 shares for a total of $4,343,527.

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Prologis, Inc. is a real estate investment trust. It operates through two segments: Real Estate Operations and Strategic Capital. The Real Estate Operations segment represents the ownership and development of logistics properties and also includes rental revenues, recoveries and expenses recognized from its consolidated properties. The Strategic Capital segment represents the management of co-investment ventures and other unconsolidated entities. The company was founded in 1991 and is headquartered in San Francisco, CA.