UPDATE: UBS Starts Public Storage (PSA) at Neutral

(Updated - June 24, 2021 5:02 AM EDT)

UBS analyst Michael Goldsmith initiates coverage on Public Storage (NYSE: PSA) with a Neutral rating and a price target of $310.00.

The analyst comments "PSA should benefit from industry tailwinds with its leading scale (2,500+ facilities), driving expected long-term same store growth of 3%. Plus, it should generate growth through acquisitions ($2.7 bn for 2022, $800 mm per year thereafter) & developments (ramping to $700 mm per year by 2026). But, we see this reflected in its valuation. PSA has provided increased transparency into its algorithm. We model annual FFO growth over the next 3 years of 8.1% (cons. 7.5%, long-term guidance of 6.7%-9.2%). From here, we believe it needs to provide evidence that its targets are achievable and beatable, while closing the performance gap with its peers (PSA's SS rev growth has trailed the industry avg by -90 bps over the last 8 years). With PSA trading at 25.4x NTM FFO (23% above its 3-yr avg), we think its risk/reward is balanced."

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 $303.76 yesterday.

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