Stock Evaluation: Analyst Forecasts and Ratings for Prologis
Prologis Maintains Moderate Growth Outlook Amid Margin Pressures
Prologis, Inc. (PLD), a San Francisco-based real estate investment trust (REIT) specializing in industrial and logistics real estate, is projected to exhibit moderate financial growth over the coming years. This growth is underpinned by strong operational fundamentals but tempered by margin pressures and macroeconomic uncertainties.
Currently, analysts anticipate EPS growth of approximately 3.8% year-over-year to $5.77 for the fiscal year ending in December 2025, on a diluted basis. Revenues are forecasted to grow modestly at about 2.1% annually, reaching around $9.5 billion by 2028, with earnings around $3.5 billion by then, slightly higher than the current figures.
In Q2 2025, Prologis reported a 9% year-over-year increase in Core FFO per share to $1.46 and a 4.9% growth in cash same-store net operating income, driven by high occupancy (94.8%) and strong rental price appreciation. However, net earnings per diluted share declined 33.7% to $0.61, influenced by foreign exchange impacts and lower gains.
The company's operational strength is bolstered by a robust build-to-suit development pipeline and record development starts ($846 million in Q2 2025), as well as a strategic focus on energy-efficiency and customer-driven innovation. These factors position Prologis well for long-term growth despite short-term volatility.
The consensus among 24 analysts covering PLD stock is a "Moderate Buy", with 12 strong buys, but also mixed hold and some sell ratings. The stock trades at a P/E ratio near 28.8, which some perceive as relatively elevated.
Heightened U.S. warehouse vacancy and rate-sensitive sector pressures, along with trade-policy risks, are weighing on sentiment for Prologis. Trade-policy shifts, especially expectations of a U.S.-China trade war, are spurring onshoring and warehousing demand for Prologis.
The main near-term risks highlighted include margin compression due to rising costs, slower-than-expected leasing recovery, and macroeconomic headwinds like currency fluctuations. These factors have led to a downward revision in 2025 earnings guidance, dampening optimism around rapid earnings rebound.
Investors should balance Prologis' fundamental growth, supported by strong demand in logistics real estate, against margin pressures and broader economic uncertainties. The general analyst outlook is cautiously optimistic, with moderate upside potential reflected in current price targets around the $119-$120 range.
The 52-week high of Prologis' stock is $132.57, but the company has returned just 0.6% on a year-to-date (YTD) basis. Notably, the Real Estate Select Sector SPDR ETF (XLRE) has rallied by 2.3% YTD, outpacing PLD stock. The Street-high price target of $148 suggests an upside potential of 39.2% for PLD's stock.
As of the date of publication, Sristi Jayaswal did not have positions in any of the securities mentioned in this article. For more information, view the website Disclosure Policy here.
Prologis owns and operates more than 1.3 billion square feet of logistics facilities across 20 countries. As of now, the market cap of Prologis is around $98.6 billion.
Prologis, in its industrial and logistics real-estate focus, is projected to witness moderate financial growth, with analysts forecasting EPS growth of approximately 3.8% year-over-year to $5.77 for the fiscal year ending in December 2025. Investors looking into real-estate investing may find interest in Prologis' growth potential, despite margin pressures and macroeconomic uncertainties.
