Raymond James adjusts ratings on industrial REITs

EastGroup Properties

11/12/2024 12:03

** Brokerage Raymond James updates its ratings and PTs of
industrial REITs EastGroup Properties  EGP.N  and Prologis
 PLD.N  
    ** Brokerage upgrades EGP to "strong buy" from "outperform"
    ** Says co's net operating income growth will decelerate
more slowly vs. peers, helped by its smaller, multi-tenant
industrial buildings with less supply pressure, more resilient
demand than larger distribution facilities
    ** Also says co's smaller size makes any external growth
more impactful; raises PT by $15 to $200
    ** Brokerage downgrades PLD to "outperform" from "strong
buy"
    ** Says PLD's risk-to-reward ratio is less compelling but
that brokerage remains constructive due to co's attractive
valuation and solid adjusted funds from operations growth
through 2026
    ** Expects long-term upside potential from its unique
strategic capital platform; lowers PT by $5 to $125
    ** Up to Tuesday's close, EGP and PLD stocks have fallen
7.2% and 15.1% respectively, YTD

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com;))