RBC Raises Prologis (PLD) Target as Industrial Real Estate Outlook Improves
Prologis, Inc. (NYSE:PLD) is included among the 14 Best Real Estate Stocks to Buy According to Hedge Funds.
Photo by NeONBRAND on Unsplash
On February 2, RBC Capital analyst Michael Carroll raised his price recommendation on Prologis, Inc. (NYSE:PLD) to $135 from $132. The analyst reiterated a Sector Perform rating, following the company’s fourth-quarter FFO beat. He said the overall results and outlook were mostly in line with expectations, but management’s tone was encouraging. In particular, he noted growing confidence in improving market conditions and the company’s ability to continue expanding its private capital business.
According to a February 4 report by The Wall Street Journal, Prologis has been in early discussions with investors about launching a new co-investment fund focused on data centers. If it moves forward, it would mark the company’s first investment vehicle targeting a sector outside its core logistics business. CFO Tim Arndt said investor interest has been stronger than expected, noting that “The interest is very real, and probably beyond our expectations.” He added that the company expects to decide in the coming months whether to proceed and what the structure of the fund might look like.
Prologis has already been building data centers for several years, but recently it has stepped up those efforts by hiring additional staff and investing in equipment to support expansion. A new co-investment vehicle could give the company another source of capital to accelerate growth in that segment. For 2026, Prologis expects to start between $4 billion and $5 billion in new development projects, with data centers making up around 40% of that total. By comparison, the company launched about $3 billion in new developments last year, with data centers accounting for only about 10%. As of the end of 2025, Prologis co-owned roughly $34 billion in real estate through its asset management platform, while wholly owning another $128 billion in properties.
Prologis, Inc. (NYSE:PLD) is a global real estate company focused on logistics and industrial properties. It operates through two main segments: Real Estate, which includes rental operations and development, and Strategic Capital, which manages investment partnerships and co-investment vehicles.
While we acknowledge the potential of PLD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Content Original Link:
" target="_blank">
