Goldman Sachs Starts Extra Space Storage (EXR) at Conviction Buy
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Price: $147.30 -0.41%
Rating Summary:
11 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
11 Buy, 15 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Goldman Sachs initiates coverage on Extra Space Storage (NYSE: EXR) with a Conviction Buy List rating and $40 price target, suggesting 21% upside.
"We believe a superior FFO growth rate (we forecast five-year growth 59% versus 42% for our coverage universe) will continue to attract investor interest," the analyst said.
Outsized growth will come from:
1. Continued lease-up of unstabilized assets. Goldman notes that the company had 2.1 million square feet of unstabilized assets that were only 65% leased at the start of the year. Stabilization of these assets will add 2% FFO by 2013, the firm estimates.
2. Strong storage internal growth on a leverage balance sheet. Goldman notes that a 10% increase in EBITDA adds 15% to FFO versus only 13% for Public Storage
For an analyst ratings summary and ratings history on Extra Space Storage.
click here. For more ratings news on Extra Space Storage click here.
Shares of Extra Space Storage closed at $33.44 yesterday.
"We believe a superior FFO growth rate (we forecast five-year growth 59% versus 42% for our coverage universe) will continue to attract investor interest," the analyst said.
Outsized growth will come from:
1. Continued lease-up of unstabilized assets. Goldman notes that the company had 2.1 million square feet of unstabilized assets that were only 65% leased at the start of the year. Stabilization of these assets will add 2% FFO by 2013, the firm estimates.
2. Strong storage internal growth on a leverage balance sheet. Goldman notes that a 10% increase in EBITDA adds 15% to FFO versus only 13% for Public Storage
For an analyst ratings summary and ratings history on Extra Space Storage.
click here. For more ratings news on Extra Space Storage click here.
Shares of Extra Space Storage closed at $33.44 yesterday.
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