Core Viewpoint - Prologis has been upgraded to a Buy rating by BofA Securities due to its strong leasing pipeline and favorable demand versus supply dynamics in the industrial REIT sector [2] Company Summary - The investment bank raised its recommendation on Prologis from Neutral to Buy [2] - BofA Securities has increased the price objective for Prologis stock [2] Industry Summary - The industrial REIT sector is experiencing improving demand compared to supply dynamics, which is beneficial for companies like Prologis [2]

Upgrades - Loop Capital upgraded Union Pacific (UNP) to Hold from Sell with a price target of $227, increased from $214, noting shares are down 5% year-to-date and valuation multiples are modestly above five-year lows [2] - BofA upgraded Prologis (PLD) to Buy from Neutral with a price target of $130, up from $118, citing improved lease conversion rates in Q3 compared to Q2 and positive demand-supply dynamics expected through 2026 [3] - Goldman Sachs upgraded Hershey (HSY) to Buy from Sell with a price target of $222, raised from $170, highlighting a compelling risk/reward scenario after multiple guidance reductions [4] - Arete upgraded Baidu (BIDU) to Buy from Sell with a price target of $143, emphasizing the potential of Baidu's Kunlun chip venture to offset challenges in its online advertising business [5] - Citizens JMP upgraded CoreWeave (CRWV) to Outperform from Market Perform with a price target of $180, projecting growth of its GPU-as-a-service business to an estimated $300 billion from $3 billion to $4 billion currently [4] Downgrades - TD Cowen downgraded Warner Bros. Discovery (WBD) to Hold from Buy with an unchanged price target of $14, expressing concerns about the stock's risk/reward after a recent rally [6] - Rothschild & Co Redburn downgraded Live Nation (LYV) to Neutral from Buy with a price target of $170, up from $144, indicating slower margin expansion and reduced earnings upside potential [6] - Stifel downgraded VF Corp. (VFC) to Hold from Buy with a price target of $16, increased from $15, stating that the stock's risk-reward is now balanced after a 12.5% one-month return [6] - JPMorgan downgraded Camp4 Therapeutics (CAMP) to Neutral from Overweight without a price target, noting early-stage challenges in its lead program despite a cash runway into 2027 [6] - JPMorgan downgraded Neumora Therapeutics (NMRA) to Underweight from Neutral without a price target, citing a failed Phase 3 trial for its treatment in major depressive disorder [6]

Core Insights - The Zacks Focus List is a curated portfolio of 50 stocks expected to outperform the market over the next 12 months [3] - The Focus List gained 13.85% in 2020, outperforming the S&P 500's return of 9.38% [5] - The cumulative return of the Focus List from February 1, 1996, to March 31, 2021, is 2,519.23%, compared to the S&P's 854.95% [5] Focus List Methodology - Stocks are selected based on earnings estimate revisions, which reflect growth and profitability expectations [6] - The Zacks Rank, a proprietary stock-rating model, utilizes earnings estimate revisions to aid in portfolio building [8] - The Zacks Rank consists of four factors: Agreement, Magnitude, Upside, and Surprise, classifying stocks into five groups from "Strong Buy" to "Strong Sell" [9] Spotlight on Prologis - Prologis, Inc. is a leading industrial real estate investment trust (REIT) focused on distribution facilities for global trade [11] - Prologis was added to the Focus List on June 3, 2020, at $95.46 per share, and has since increased by 20.84% to $115.35 [12] - The Zacks Consensus Estimate for Prologis has increased by $0.07 to $5.77, with an expected earnings growth of 3.8% for the current fiscal year [12]

Company Overview - Prologis is the world's largest logistics REIT with $200 billion of assets across 1.3 billion square feet in 20 countries [2] - The company operates in consumption-oriented, supply-constrained markets for logistics distribution [3] Development and Growth - Prologis develops approximately $4 billion to $5 billion of new logistics properties annually [3] - Over the past 20 years, the company has developed nearly $50 billion of assets, creating about $14 billion in value [4] - The company has a land bank with $42 billion of investment opportunities, representing nearly 10 years of potential development [4] Asset Management - Prologis has an asset management business called Strategic Capital, which encompasses about $65 billion of third-party assets [5]

PresentationWhy don't we get started here. So welcome to the Prologis roundtable this morning. Joining me up here is Tim Arndt, who's the CFO of the company. And we have Justin Meng, who heads up IR. So Tim, I'll turn it over to you for some opening remarks.Timothy ArndtChief Financial Officer Okay. Thank you. Good morning, everybody. It's great to be here. I'll just begin with a quick description of Prologis, if anybody is somehow unfamiliar, but we are, of course, the world's largest logistics REIT. We ha ...

Financial Data and Key Metrics Changes - Prologis has $200 billion in assets across 1.3 billion square feet in 20 countries, with a development franchise averaging $4.5 billion annually [2][3] - The company has a land bank with $42 billion of investment opportunity, equating to nearly 10 years of development potential [3] - The build-to-suit activity reached a record $1.1 billion in the first half of the year, with eight new build-to-suit projects signed in the third quarter [10][11] Business Line Data and Key Metrics Changes - The leasing pipeline stood at 130 million square feet, with improvements in the conversion of new leasing proposals to signed leases, although still below historical norms [7][19] - Larger space sizes, particularly those over 250,000 square feet, have been leasing better, with strong activity noted in LATAM and Southeast U.S. markets [14][31] Market Data and Key Metrics Changes - The company noted a slowdown in leasing activity due to tariff concerns, but this has improved over the past few months, with a more positive sentiment emerging [5][6] - Vacancy rates are expected to build slightly over the next two to three quarters, with a forecasted bottoming out below 8% in the U.S. [20][24] Company Strategy and Development Direction - Prologis emphasizes a strategy focused on quality earnings and a high-quality portfolio in logistics real estate, targeting markets with significant populations and high household incomes [67] - The company is exploring new capital sources and joint ventures to expand its $65 billion in third-party assets under management [51] - The Essentials business aims to provide additional services to smaller and medium-sized enterprises, enhancing customer relationships and contributing to EBITDA [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding demand trends, noting that the impact of new supply has been more muted than expected [73] - The company anticipates a reset in occupancy and rental rates by 2026, with expectations of returning to typical growth levels thereafter [76][78] - The ongoing e-commerce growth and challenges in new supply are seen as favorable for the logistics sector [58][59] Other Important Information - Prologis is focusing on AI and data center conversion opportunities, leveraging its existing logistics buildings for future use [43][44] - The transaction market is showing signs of improvement, with a 15% increase in volume year-to-date and multiple bidders for transactions [39][40] Q&A Session Summary Question: Has tenant decision-making improved post-tariff concerns? - Yes, there has been a positive momentum in leasing activity, with improvements in the conversion of proposals to signed leases [5][6] Question: What are the trends in box sizes and market activity? - Larger spaces are leasing better, with strong activity in LATAM and Southeast U.S. markets, while Europe has also shown good build-to-suit volume [14][31] Question: How is Prologis addressing the leasing pipeline? - The company is actively working to convert deals in the pipeline, focusing on optimizing occupancy and rent change rates [19][20] Question: What is the outlook for net absorption and vacancy rates? - The company expects net absorption to be between 75 and 100 million square feet for the year, with vacancy rates projected to bottom out in the coming quarters [24][25] Question: How is the transaction market performing? - The transaction market is improving, with a 15% increase in volume year-to-date and relatively flat values guided by appraisals [39][40] Question: What are the company's plans regarding AI initiatives? - The company plans to increase spending on AI initiatives in the coming year [62] Question: How does Prologis view the future growth of the logistics sector? - The company believes growth will remain stable, supported by favorable supply and demand dynamics [58][59]

Group 1 - Prologis (NYSE: PLD) is recognized as one of the largest industrial REITs, characterized by a stable debt profile, a healthy portfolio, and a well-supported dividend payout [1] - The company is experiencing long-term tailwinds driven by a boom in e-commerce, which has significantly increased demand for its services [1]

Company Overview - Prologis (PLD) is a leading REIT in logistics real estate, focusing on the ownership, development, and management of high-quality logistics facilities, which are crucial for the economy [1] Analyst Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology, and has written extensively on value investing [1] Investment Focus - The analyst has a particular interest in metals and mining stocks but is also knowledgeable in other industries such as consumer discretionary/staples, REITs, and utilities [1]

Core Viewpoint - Prologis, Inc. (NYSE: PLD) is rated as a Buy for income investors interested in long-term buy-and-hold real estate investment trusts (REITs) due to its position as the global leader in logistics real estate, which has recently experienced significant business growth [1]. Company Summary - Prologis is recognized as the global leader in logistics real estate, benefiting from a recent boom in business [1]. Investment Perspective - The recommendation is particularly aimed at income investors who are looking for stable, long-term investment opportunities in the REIT sector [1].

Company Announcement - Prologis, Inc. will have its CFO, Tim Arndt, present at the BofA Securities 2025 Global Real Estate Conference in New York on September 10, 2025, at 9:35 a.m. ET [1] - The presentation will be available via live audio webcast, with a replay accessible afterward [1] Company Overview - Prologis is a leader in the logistics industry, creating intelligent infrastructure that supports global commerce by connecting digital and physical worlds [2] - The company focuses on agile supply chains and clean energy solutions, aiming to enhance business efficiency and sustainability [2] - Prologis claims unmatched scale, innovation, and expertise, positioning itself as a unique entity in shaping the future of logistics [2]