Barclays Maintains an 'Overweight' on Public Storage (PSA); Strong Fundamentals/Balance Sheet Even with Macro Uncertainty
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Price: $322.49 -0.08%
Rating Summary:
9 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
9 Buy, 20 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on Public Storage (NYSE: PSA) price target raised from $115 to $128.ds
Barclays analyst says, "Key Takeaway: Operating results continued to trend ahead of expectations (8.6% YOY SSNOI growth for 3Q11) and high occupancy should provide support to pricing power as the company enters the slower winter months. PSA also remained active on the investment front, continuing to find opportunities to put its substantial liquidity and free cash flow to work. Finally, the company continued to lower its cost of capital by refinancing redeemable preferred shares. We remain positive on PSA's stock for several reasons: strong fundamentals, a demonstrated ability to continue to grow externally, a very solid balance sheet/liquidity position, and yet an in-line earnings multiple relative to the overall REIT group."
"We are lowering our FY2011 FFO estimate to $5.77ps (from $5.86ps), to reflect the headline miss partially offset by better than anticipated NOI growth (+2.2% for FY2011) and are increasing our 2012 estimate to $6.18ps (from $5.93ps) also on stronger NOI growth (+2.6%). Our five-year (2011-2016) operating FFO and CAD growth rates are each 4%."
For an analyst ratings summary and ratings history on Public Storage click here. For more ratings news on Public Storage click here.
Shares of Public Storage closed at $124.08 yesterday.
Barclays analyst says, "Key Takeaway: Operating results continued to trend ahead of expectations (8.6% YOY SSNOI growth for 3Q11) and high occupancy should provide support to pricing power as the company enters the slower winter months. PSA also remained active on the investment front, continuing to find opportunities to put its substantial liquidity and free cash flow to work. Finally, the company continued to lower its cost of capital by refinancing redeemable preferred shares. We remain positive on PSA's stock for several reasons: strong fundamentals, a demonstrated ability to continue to grow externally, a very solid balance sheet/liquidity position, and yet an in-line earnings multiple relative to the overall REIT group."
"We are lowering our FY2011 FFO estimate to $5.77ps (from $5.86ps), to reflect the headline miss partially offset by better than anticipated NOI growth (+2.2% for FY2011) and are increasing our 2012 estimate to $6.18ps (from $5.93ps) also on stronger NOI growth (+2.6%). Our five-year (2011-2016) operating FFO and CAD growth rates are each 4%."
For an analyst ratings summary and ratings history on Public Storage click here. For more ratings news on Public Storage click here.
Shares of Public Storage closed at $124.08 yesterday.
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