Citigroup Reiterates Neutral, $27.50 Target on Prologis

Citigroup maintains its Neutral rating on Prologis

with a $27.50 target price as the company makes solid progress. Citigroup notes, "PLD's shares are reacting well to an earnings beat, in-line 2012 guidance, and positive underlying operating fundamentals, even though ProLogis' shares are up significantly off last summer's lows. While the report was positive, PLD still has a lot of transactions to complete to attain its de-leveraging goals, let alone having a cooperating global industrial market. There is little doubt that the shares will remain volatile and subject to larger than average swings given its higher leverage (~9x debt to EBITDA), ~30% exposure to Europe, and a ramping development pipeline ($1.25bn of starts in '12 following $1bn in ‘11)." PLD closed at $34.18 a share.