Prologis ( NYSE: PLD ) shares climbed as much as 4.2% in Tuesday premarket trading after Evercore upgraded the industrial REIT to Outperform from In Line, as its strong balance sheet coupled with its high-quality portfolio "will help the company manage its business through the economic downturn," according to a note written to clients.
The slump in Prologis ( PLD ) shares, meanwhile (down 37% year-to-date), reflected growing concerns about the economy's health and "this has certainly been exasperated by FedEx's earnings results which were negatively impacted by falling demand and the company's own commentary for an expectation of lower promote income in 3Q (and '22)," Evercore pointed out.
The company's better-than-expected Q2 earnings , though, was helped by robust demand post-pandemic. "While the industrial sector is not immune to a recession given the cyclical nature of the business, PLD will continue to generate very strong growth" in the coming years, the note read.
Evercore's Outperform rating disagrees with the Quant rating of Hold, though converges with the average Wall Street Analyst rating of Buy.
See why SA contributor Colorado Wealth Management Fund recently bought more shares of Prologis .
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Prologis stock advances after Evercore upgrades to Outperform