Public Storage (PSA) PT Raised to $288 at BofA Securities After Accretive Acquisition

April 14, 2021 7:41 AM EDT
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Price: $275.41 +0.29%

Rating Summary:
    5 Buy, 16 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 26 | Down: 11 | New: 8
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BofA Securities analyst Jeffrey Spector raised the price target on Public Storage (NYSE: PSA) to $288.00 (from $268.00) after the company announced the acquisition of ezStorage for $1.8B. The transaction is a 3.6% nominal cap rate on 4Q20 annualized NOI, with an expected 4.0-4.4% yield by year two. The portfolio includes 48 properties (4.2M SF of rentable space) located in D.C., VA and MD.

The analyst stated "We are encouraged to see PSA pursue external growth opportunities and believe the portfolio complements PSA’s existing Mid-Atlantic exposure. Based on BAC aggregated credit and debit card data, storage spending in the D.C. area has remained strong and trending higher as of March (see report for disclaimers, limitations and methodology regarding BAC card data). Furthermore, PSA highlighted high barriers to entry in ezStorage’s submarkets due to difficulty securing entitlements and construction moratoriums."

while maintaining a Buy rating.

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