uploads///Rating

What Industrial REITs Analysts Think after 2Q17

By

Aug. 25 2017, Published 11:19 a.m. ET

Prologis’s ratings and target price

Prologis (PLD) has been assigned a target price of $62.75, which is 0.8% higher than its current price level. Notably, 11 analysts have assigned the stock a “buy” or a “strong buy” rating, while six analysts have assigned the stock a “hold” rating.

Investors appear to be bullish about PLD’s better-than-expected results in 1H17. Investors also seem to be encouraged by the expansionary activities that have helped PLD maintain profitability.

Article continues below advertisement

DRE’s price target and ratings

By comparison, Duke Realty (DRE) has been assigned a target price of $29.38, which represents a 0.2% premium to the current price level of the stock. DRE has been assigned a “buy” or a “strong buy” rating by six analysts and a “hold” rating by eight analysts.

DRE’s expansionary initiatives and its enhanced guidance for fiscal 2017 have made many investors bullish on the stock, but the company’s expected increase in the cost of debt and the higher interest environment have made some investors wary about DRE’s future performance.

DCT’s price target and ratings

DCT Industries (DCT) has a target price of $58.5, which represents a 1.9% premium to its current price level. The stock has been rated a “buy” or “strong buy” by five analysts. Nine analysts have rated the stock as “hold.”

DCT’s strong business momentum and development activities have made many investors bullish on the stock, but some investors seem to be apprehensive DRE’s performance in the high interest rate environment going forward.

Notably, PLD, DRE, DCT, and Simon Property (SPG) together make up ~16% of the SPDR Dow Jones REIT ETF (RWR), which has a net asset value of ~93.8x, with significant exposure to REITs.

Advertisement

More From Market Realist