Wells Fargo Starts ProLogis (PLD) at Outperform; Sizable Upside Potential If Execution Goals Met
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Price: $141.03 -0.13%
Rating Summary:
21 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
21 Buy, 12 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on ProLogis (NYSE: PLD) with an Outperform. PT range $30-$32.
Wells analyst says, "PLD is in the midst of a portfolio and balance sheet overhaul that should result in better portfolio quality, a stronger balance sheet, and ultimately improved valuation, in our view. We like the upside potential for PLD for the following reasons: 1) long-term rent growth potential due to low in-place rents that should expire in 2013-15, 2) additional NOI growth potential from occupancy gains, 3) sharply reduced leverage outlook by year-end 2013, yet still upside potential to EPS, 4) shares trade at a modest discount to NAV (2% discount to total asset value), but most sector leading REITs trade at premiums to asset value estimates, and 5) there is strong interest in high quality industrial properties from institutional investors, which should help support current
valuation levels."
For an analyst ratings summary and ratings history on ProLogis click here. For more ratings news on ProLogis click here.
Shares of ProLogis closed at $28.76 yesterday.
Wells analyst says, "PLD is in the midst of a portfolio and balance sheet overhaul that should result in better portfolio quality, a stronger balance sheet, and ultimately improved valuation, in our view. We like the upside potential for PLD for the following reasons: 1) long-term rent growth potential due to low in-place rents that should expire in 2013-15, 2) additional NOI growth potential from occupancy gains, 3) sharply reduced leverage outlook by year-end 2013, yet still upside potential to EPS, 4) shares trade at a modest discount to NAV (2% discount to total asset value), but most sector leading REITs trade at premiums to asset value estimates, and 5) there is strong interest in high quality industrial properties from institutional investors, which should help support current
valuation levels."
For an analyst ratings summary and ratings history on ProLogis click here. For more ratings news on ProLogis click here.
Shares of ProLogis closed at $28.76 yesterday.
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