Cubesmart’s Hold Rating Reflects Balanced Risk-Reward Amid Earnings Outperformance and Revenue Growth Uncertainty

BMO Capital analyst Juan C. Sanabria maintained a Hold rating on Cubesmart (CUBE – Research Report) today and set a price target of $48.00.

Juan C. Sanabria has given his Hold rating due to a combination of factors including Cubesmart’s recent earnings performance and future guidance. The company’s first-quarter 2025 earnings surpassed both market expectations and its own guidance, with adjusted funds from operations (FFO) per share slightly exceeding projections. Despite this positive performance, there is an anticipated slowdown in same-store revenue growth for the remainder of the year, which introduces a level of uncertainty.
Additionally, while Cubesmart has increased its full-year FFO guidance slightly, the decline in same-store occupancy rates and the cautious outlook for revenue growth suggest a balanced risk-reward scenario. The company’s financial metrics, such as management income and general and administrative expenses, are expected to rise modestly, and recent acquisitions are factored into the outlook. These elements contribute to a Hold rating, reflecting a neutral stance given the current market conditions and company performance.

In another report released on April 22, Bank of America Securities also maintained a Hold rating on the stock with a $44.00 price target.