In a report released today, Ronald Kamdem from Morgan Stanley maintained a Hold rating on Extra Space Storage (EXR – Research Report), with a price target of $156.00.
Ronald Kamdem has given his Hold rating due to a combination of factors surrounding Extra Space Storage’s recent performance and future outlook. The company’s fourth-quarter earnings were in line with expectations, but the guidance for 2025 was lower than anticipated, which could lead to a neutral or negative reaction in the stock price. While there were improvements in move-in rates and occupancy, property taxes were higher than expected, and there are ongoing concerns about the integration of the LSI merger and its impact on same-store revenue.
Additionally, Kamdem notes that the average rent has decreased slightly, and there are uncertainties regarding the pace of tenant rent increases and potential impacts from external factors like the LA fire. The company’s acquisition pipeline and cap rates are also areas of interest, but the overall financial metrics, including leverage and interest expenses, suggest a cautious outlook. These mixed signals contribute to the Hold rating, as the potential risks and rewards appear balanced at this time.
In another report released yesterday, Truist Financial also maintained a Hold rating on the stock with a $155.00 price target.