Analyst Michael Diana of Maxim Group maintained a Buy rating on Mobile Infrastructure Corp (BEEP – Research Report), retaining the price target of $7.00.
Michael Diana has given his Buy rating due to a combination of factors that highlight the potential growth and undervaluation of Mobile Infrastructure Corp. Despite the company’s fourth-quarter results falling short of expectations, its initial guidance for 2025 suggests solid growth driven by secular trends such as the return to office and the conversion of office buildings into residential apartments. This guidance does not yet account for the potentially significant positive impact of asset rotation, which involves selling underperforming parking facilities and acquiring new ones with higher yields.
Additionally, the company’s financial position is sound, with a balance sheet that shows no immediate need for new capital to finance operations. The potential for asset rotation to enhance earnings without requiring additional capital raises is a key factor in the positive outlook. Furthermore, the shares are considered significantly undervalued, trading at a lower multiple compared to peers in the public storage sector. The price target of $7.00 reflects a valuation in line with these peers and is supported by the company’s net asset value, making it an attractive investment opportunity.