Analyst Ratings January 26, 2026

Truist Cuts ProLogis Price Target Slightly, Keeps Buy Rating Amid FFO Adjustments

Analyst trims 2026-27 normalized FFO outlook but expects accelerating earnings and sees upside from valuation

By Derek Hwang PLD
Truist Cuts ProLogis Price Target Slightly, Keeps Buy Rating Amid FFO Adjustments
PLD

Truist Securities reduced its price objective for ProLogis to $139 from $142 while retaining a Buy rating. The broker modestly lowered its 2026 and 2027 normalized funds from operations (FFO) estimates, yet projects accelerating earnings and values the shares as offering roughly 12.5% total return potential without multiple expansion. Recent fourth-quarter 2025 results showed an earnings and revenue beat, prompting mixed adjustments from other analysts.

Key Points

  • Truist lowered its ProLogis price target to $139 from $142 and maintained a Buy rating.
  • The firm made "small downward adjustments" to 2026 and 2027 normalized FFO estimates but still expects "healthy accelerating earnings growth."
  • ProLogis reported a strong Q4 2025 earnings beat with EPS of $1.49 (versus $0.70 forecast) and revenue of $2.1 billion (versus $2.09 billion forecast), prompting mixed analyst reactions.

Truist Securities has trimmed its 12-month price target for ProLogis (NYSE:PLD) to $139.00 from $142.00, but left its Buy recommendation intact. The firm noted the new target remains above the current analyst consensus high target of $155, while ProLogis shares were trading at $127.15 and remain close to a 52-week high of $134.94.

The change follows what Truist described as "small downward adjustments" to its normalized FFO estimates for 2026 and 2027 for the logistics-focused real estate investment trust. Despite the adjustments, Truist continues to forecast "healthy accelerating earnings growth," with its 2027 normalized FFO projection finishing slightly above the analyst consensus.

Third-party data cited in the analyst note indicates ProLogis has produced $3.47 in earnings per share over the last twelve months, and analysts expect the company to remain profitable through 2026. Truist calculated that the revised $139 price target implies about a 12.5% total return potential even without any expansion in the FFO multiple, a stance the firm suggested "could prove conservative" given that the stock is trading 2.5 turns below its five-year average price-to-FFO ratio.

Truist also weighed in on sector positioning, calling industrial real estate "one of the better positioned REIT sectors" as 2026 begins. That view underpins the firm’s decision to keep ProLogis on its Buy list. ProLogis currently offers a 3.18% dividend yield, has paid dividends for 15 consecutive years, and reported dividend growth of 5.21% in the most recent twelve-month period.


Quarterly performance and peer reactions

ProLogis delivered a notable beat in the fourth quarter of 2025. The company posted earnings per share of $1.49, a 112.86% increase over the forecasted $0.70, and reported revenue of $2.1 billion versus a projection of $2.09 billion.

Those results prompted several firms to update their views. Freedom Capital Markets downgraded ProLogis from Buy to Hold while raising its price target to $138.00 from $134.00. BMO Capital lifted its target to $123.00 from $119.00 and maintained a Market Perform rating. Evercore ISI increased its price target to $121.00 from $118.00 and kept an "In Line" rating.


Implications and context

Truist’s note ties its guidance changes directly to modest FFO adjustments for 2026 and 2027 but stops short of altering its medium-term view for the company’s earnings trajectory. The firm’s assessment of valuation - that the stock trades below its five-year average price-to-FFO ratio - is presented as a potential source of upside if multiples re-normalize.

Investors and market participants will likely weigh the combination of ProLogis’s recent earnings beat, its steady dividend profile, and the range of analyst revisions in forming near-term expectations. The differing responses from brokerages illustrate a mix of caution and incremental optimism following the quarterly report.

Risks

  • Downward adjustments to 2026 and 2027 normalized FFO estimates introduce uncertainty around near-term cash generation for the industrial REIT sector.
  • Valuation sensitivity: the upside Truist projects assumes limited FFO multiple expansion and notes the stock trades 2.5 turns below its five-year price-to-FFO average, indicating potential volatility if multiples re-rate.
  • Analyst divergence following the Q4 2025 beat - with some firms lowering recommendations or keeping neutral ratings despite higher targets - suggests differing interpretations of the sustainability of recent results.

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