- Baird analyst David Rodgers downgraded Duke Realty ( NYSE: DRE ) to Market Weight on Friday, as he sees price discovery and recession fears limiting high-multiple returns.
- In his view, the Industrial correction is not yet complete. While he sees upside in stock next year, H2 2022 should continue to be challenging, he said.
- "The clarity on on negative spreads, continued price discovery and the sharpness of a pending recession are likely to keep value gaps wide near term," Rodgers wrote in a note to clients. "With this in mind, we are lowering DRE's rating to Neutral to match PLD."
- The Neutral rating on Duke ( DRE ) aligns with the Quant rating and the average SA Author's rating.
- DRE stock, meanwhile, is rising 2.0% in Friday morning trading.
- Recall that last month, Prologis ( PLD ) and Duke ( DRE ) agreed to a merger in which PLC will acquire DRE in an all-stock transaction valued at ~$26B at the time .
For further details see:
Duke Realty downgraded to Neutral at Baird ahead of Prologis deal