Why Prologis Stock Was a Winner on Thursday

On the back of a solid quarterly earnings report at the start of the week, the upward momentum of Prologis (NYSE: PLD) stock continued through Thursday's trading session. This was helped by a price target raise by one of the analysts tracking the big real estate company; as a result, Prologis's share price closed the day 3% higher. That easily eclipsed the 0.5% increase of the benchmark S&P 500 (SNPINDEX: ^GSPC).

Improved views of the REIT's prospects

Prologis, which functions as a real estate investment trust (REIT), reported its fourth-quarter figures before the market open Monday. Happily for the company and its investors, it convincingly beat the consensus analyst estimates on both the top and bottom lines. And growth was strong, with core funds from operations (FFO, widely considered to be the most important profitability line item for REITs) rising by a sturdy 10% year over year.

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That performance was good enough to inspire several analyst updates. The one that was published after hours Tuesday was authored by Evercore ISI's Steve Sakwa, who raised his price target to $115 per share from his previous $111. Despite the shift, Sakwa left his in-line (read: neutral or hold) recommendation on the stock intact.

It wasn't immediately clear why the analyst made his move, but it came on the heels of more bullish Prologis takes. For instance, JPMorgan Chase's Michael Muller reiterated his overweight (buy) recommendation and $131 price target on the stock.

Looking forward to a good year

Prologis appears to be heading into a prosperous 2025, as the company said that leasing has been brisk following the presidential election near the end of last year. It's also becoming more active in the data center segment, which is sure to be robust, given the sharply increasing demands for data storage engendered by artificial intelligence (AI).

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JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase and Prologis. The Motley Fool recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.