KeyBanc Reiterates a 'Buy' on CubeSmart (CUBE); Despite Some Disappointment, Shares are Attractive
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Price: $41.80 --0%
Rating Summary:
7 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 13
Rating Summary:
7 Buy, 11 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 8 | New: 13
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KeyBanc reiterates a 'Buy' on CubeSmart (NYSE: CUBE) price target of $13.00.
Analyst, Todd M. Thomas, said, "CUBE reported a solid 4Q result, but initial 2012 FFO guidance that is 3% below consensus is likely to disappoint. We expect CUBE to underperform as a result, particularly following stronger guidance from peers Extra Space Storage Inc. (NYSE: EXR) and Sovran Self Storage, Inc. (NYSE: SSS), which both guided 4% above-consensus. Adding to the disappointment was same-store revenue growth of 3.4%, which was among the lowest in the sector this quarter. Had it not been for a decline in operating expenses, same-store NOI growth would have likely been the lowest in the sector..."
"...Despite what we anticipate will be viewed as a disappointing result next to its peers' more optimistic outlooks, the Company's occupancy bested our estimate for the quarter and operations continue to point toward a healthy recovery in fundamentals that we expect to continue to improve throughout 2012. CUBE shares trade at an attractive 10% discount to the sector on a 2012 AFFO multiple basis and at a 6.5% implied cap rate, which is 80bps higher than the self storage sector average."
For an analyst ratings summary and ratings history on CubeSmart click here. For more ratings news on CubeSmart click here.
Shares of CubeSmart closed at $11.81 yesterday.
Analyst, Todd M. Thomas, said, "CUBE reported a solid 4Q result, but initial 2012 FFO guidance that is 3% below consensus is likely to disappoint. We expect CUBE to underperform as a result, particularly following stronger guidance from peers Extra Space Storage Inc. (NYSE: EXR) and Sovran Self Storage, Inc. (NYSE: SSS), which both guided 4% above-consensus. Adding to the disappointment was same-store revenue growth of 3.4%, which was among the lowest in the sector this quarter. Had it not been for a decline in operating expenses, same-store NOI growth would have likely been the lowest in the sector..."
"...Despite what we anticipate will be viewed as a disappointing result next to its peers' more optimistic outlooks, the Company's occupancy bested our estimate for the quarter and operations continue to point toward a healthy recovery in fundamentals that we expect to continue to improve throughout 2012. CUBE shares trade at an attractive 10% discount to the sector on a 2012 AFFO multiple basis and at a 6.5% implied cap rate, which is 80bps higher than the self storage sector average."
For an analyst ratings summary and ratings history on CubeSmart click here. For more ratings news on CubeSmart click here.
Shares of CubeSmart closed at $11.81 yesterday.
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