Juan C. Sanabria, an analyst from BMO Capital, maintained the Buy rating on Public Storage (PSA – Research Report). The associated price target remains the same with $340.00.
Juan C. Sanabria has given his Buy rating due to a combination of factors including the company’s recent performance and future outlook. The fourth-quarter earnings were in line with expectations, showing improving trends in key metrics such as in-place rates and self-storage revenue, despite some declines in new customer rates. The 2025 earnings guidance, although missing expectations when accounting for the Los Angeles rent restrictions, still presented a more favorable outlook than anticipated by both BMO’s survey and the broader market.
Despite the challenges, the core funds from operations (FFO) were close to market expectations, indicating stable performance. While the guidance for 2025 was slightly below the Street’s estimates, the impact of the Los Angeles fire rent restrictions was a significant factor. Sanabria believes that the overall results are satisfactory given the low expectations in the storage sector, and he highlights the importance of a housing market recovery as a key factor for future growth.
In another report released on February 21, Wells Fargo also maintained a Buy rating on the stock with a $330.00 price target.