Prologis Analyst Touts ‘Ample Defenses’ Against Data Center Challenges

Prologis, Inc. (NYSE: PLD) shares closed nearly 3% lower after reporting third-quarter results, with a fourth-quarter FFO guidance of $1.54 per share, falling 3 cents below consensus. Analyst Thomas Catherwood maintained a Buy rating with a price target of $170, citing strong U.S. demand and a decrease in vacancy rates to 7.1%. The company is raising rents in about 30% of its markets, up from 10% a year ago, with notable growth in regions like Dallas and Northern California. Despite challenges in the data center sector, Prologis's development strategy and access to capital are viewed as strong defenses.