Miller Tabak Downgrades ProLogis (PLD) to Sell; Lower Leverage Extracts a Price; Cutting Estimates
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Price: $103.49 -1.15%
Rating Summary:
25 Buy, 7 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
25 Buy, 7 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Miller Tabak downgraded ProLogis (NYSE: PLD) to Sell. PT increased from $13.37 to $14.69.
Miller analyst says, "We believe the lion's share of the benefits of the AMB Property (NYSE: AMB) merger are priced into PLD stock today, as is the assumption of near-zero possibility of the deal falling through. (Note: although AMB is taking over PLD, and PLD shareholders are due to receive 0.4464 shares of AMB for each share of PLD, the surviving accounting entity will be PLD. All of our comments in this report, except where explicitly noted, are based on the merger closing 6/30/11, and the 2011-2012 numbers we reflect are based on the current PLD stock -- i.e., the "old" PLD stock, so that comparisons based on PLD's current stock price will be consistent. There will be the equivalent of 951.4MM "old" PLD shares outstanding after the merger, vs. 570.8MM today.)"
"Working through the numbers, we are cutting our 2011-2012 FFO per share estimates for PLD to $0.55 and $0.76, respectively, from the previous $0.75 and $1.05. Please note that we would have cut these without the merger, as our estimates for C&D activity were for a much stronger recovery than PLD management expects."
For more ratings news on ProLogis click here and for the rating history of ProLogis click here.
Shares of ProLogis closed at $16.11 yesterday.
Miller analyst says, "We believe the lion's share of the benefits of the AMB Property (NYSE: AMB) merger are priced into PLD stock today, as is the assumption of near-zero possibility of the deal falling through. (Note: although AMB is taking over PLD, and PLD shareholders are due to receive 0.4464 shares of AMB for each share of PLD, the surviving accounting entity will be PLD. All of our comments in this report, except where explicitly noted, are based on the merger closing 6/30/11, and the 2011-2012 numbers we reflect are based on the current PLD stock -- i.e., the "old" PLD stock, so that comparisons based on PLD's current stock price will be consistent. There will be the equivalent of 951.4MM "old" PLD shares outstanding after the merger, vs. 570.8MM today.)"
"Working through the numbers, we are cutting our 2011-2012 FFO per share estimates for PLD to $0.55 and $0.76, respectively, from the previous $0.75 and $1.05. Please note that we would have cut these without the merger, as our estimates for C&D activity were for a much stronger recovery than PLD management expects."
For more ratings news on ProLogis click here and for the rating history of ProLogis click here.
Shares of ProLogis closed at $16.11 yesterday.
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