UPDATE: Stifel Nicolaus Upgrades Prologis to Buy on Valuation, Asset Quality

Stifel Nicolaus raised its rating on Prologis

from Hold to Buy and established a $40 price target. Stifel Nicolaus commented, "The Bull Case is 1) inexpensive relative to the Blue Chip REITs we cover with an Implied NOI Cap Rate of 6.2%, which is 60-70 bps higher than the other $5B market cap REITs we cover 2) a highly flexible asset disposition plan for exiting non-core markets, 3) an ability to pick and choose capital deployment locales globally, 4) expected continued declining cap rates for core industrial assets, 5) the platform is unmatched in the industrial space globally, 6) extensive relationships with global logistics tenants." Prologis closed at $34.82 on Wednesday.