Morgan Stanley analyst Ana Escalante maintained a Sell rating on Safestore Holdings today and set a price target of p675.00.
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Ana Escalante has given his Sell rating due to a combination of factors tied to Safestore Holdings’ earnings outlook and valuation. While the latest full-year results broadly matched expectations, earnings per share declined year on year and the current share price implies a relatively high earnings multiple, which Escalante views as demanding given the muted growth profile. Management’s guidance points only to a modest recovery in earnings in FY2026, leaving profits effectively flat versus levels seen two years earlier, which limits the near-term upside case for the stock.
Ana Escalante’s rating is based on the view that structural and cyclical headwinds will restrain revenue and profit growth over the next couple of years. He does not foresee a strong improvement in like-for-like revenues without a meaningful rebound in housing market activity, which he considers unlikely in 2026. In addition, he expects operating costs, including property taxes and wage-related expenses, to rise more than the market currently anticipates, putting further pressure on margins and earnings into 2027. Taken together, these factors lead him to conclude that the risk/reward is skewed to the downside, supporting a Sell recommendation on Safestore Holdings.
According to TipRanks, Escalante is an analyst with an average return of -7.5% and a 28.57% success rate. Escalante covers the Real Estate sector, focusing on stocks such as Unite Group plc, LondonMetric Property, and Safestore Holdings.