Morgan Stanley analyst Ronald Kamdem maintained a Hold rating on Public Storage (PSA – Research Report) today and set a price target of $315.00.
Ronald Kamdem has given his Hold rating due to a combination of factors impacting Public Storage’s financial performance and outlook. The company’s core funds from operations (FFO) for the fourth quarter fell slightly short of expectations, primarily due to lower net operating income and equity in income. Additionally, the guidance for 2025’s core FFO is below consensus estimates, influenced by a significant impact from a fire incident in Los Angeles.
Despite these challenges, some operating metrics showed resilience, with same-store revenue and net operating income outperforming expectations, and a slight increase in quarter-end rents. However, the decline in occupancy rates and move-in volumes, alongside questions surrounding housing activity and tenant delinquency trends, contribute to a cautious outlook. The company’s recent acquisitions and development activities indicate growth potential, but these factors collectively justify a Hold rating as investors weigh the risks and opportunities.
In another report released yesterday, Truist Financial also maintained a Hold rating on the stock with a $316.00 price target.