Cubesmart, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Samir Khanal from Bank of America Securities maintained a Buy rating on the stock and has a $48.00 price target.
Claim 50% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Samir Khanal has given his Buy rating due to a combination of factors tied to CubeSmart’s positioning in the New York City self‑storage market and recent transaction evidence. He highlights that a large Manhattan-area portfolio sale at an attractive valuation provides supportive pricing data for NYC storage assets, which is important because nearly 17% of CubeSmart’s net operating income comes from this market. The transaction’s implied cap rate is meaningfully lower than CubeSmart’s own implied cap rate, suggesting that the market may be undervaluing CubeSmart’s NYC portfolio and offering upside for the shares.
Khanal also underscores CubeSmart’s status as having the greatest NYC exposure among its peers, in a market characterized by high barriers to entry and limited new supply. He points out that CubeSmart has been delivering stronger revenue growth in the New York metropolitan area than in its overall portfolio, reinforcing the quality and resilience of its assets there. Combined with a solid management team and a healthy balance sheet, these factors support his view that the stock’s current price does not fully reflect its intrinsic value, justifying a Buy rating and a price objective above the prevailing market price.
In another report released on January 15, TipRanks – Google also upgraded the stock to a Buy with a $43.00 price target.