Baird Raises Price Target On Prologis For Second Time In A Month


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Baird downgraded Prologis Inc (NYSE: PLD) to Neutral from Outperform, but raised the price target to $54 from $52, which represents the second increase during the past four weeks. The analysts expect the company to continue to deliver solid growth and achieve an "A"-rated balance sheet within 6-12 months, but they believe this is tempered by a fair valuation.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Despite the downgrade, Baird forecast rent spreads to be meaningfully positive for Prologis going forward. Their valuation framework assumes around 60 percent tenant rollover over the next three years (including early renewals) with a 15 percent mark-to-market on those leases.

Additionally, the analysts estimate development to continue at an approximate pace of $2 billion of starts per year on a proportionate share basis. However, they believe that increasing this level of activity will be difficult in relation to upside catalysts for investors, taking into account rising new construction across the U.S.

Posted In: Analyst ColorDowngradesAnalyst RatingsBaird