Prologis (PLD) is well-positioned to "create meaningful value" through its data-center platform and to benefit from the broader industrial recovery, RBC Capital Markets said Tuesday in a report.
RBC increased its estimates for funds from operations by $0.02 a share to $6.25 in 2026, by $0.04 to $6.64 in 2027, and by $0.05 to $7.05 in 2028.
The company's data-center pipeline, including $2.1 billion in new projects started in H1, should generate an 8.5% yield and margins of 25% to 50%, the report said.
RBC highlighted Prologis' pending acquisition of Segro, which could add substantial data-center power capacity and further expand the company's development pipeline.
RBC upgraded its rating on Prologis stock to outperform from sector perform and increased its price target to $160 from $148.
Price: $140.87, Change: $+1.82, Percent Change: +1.31%