Juan C. Sanabria, an analyst from BMO Capital, maintained the Buy rating on Public Storage (PSA – Research Report). The associated price target remains the same with $340.00.
Juan C. Sanabria has given his Buy rating due to a combination of factors including Public Storage’s strategic move to acquire a significant stake in Abacus Storage King, alongside Ki Corporation. This acquisition represents a strategic entry into the Australian market, which is viewed as a long-term growth opportunity. The proposed deal offers a 25.6% premium to the three-month volume-weighted average price, indicating a favorable valuation.
Additionally, the joint venture structure with Ki Corporation provides a de-risked approach to this investment, allowing Public Storage to leverage local expertise while sharing financial commitments. The acquisition includes a substantial portfolio of self-storage facilities and development sites, enhancing Public Storage’s asset base. The potential for long-term shareholder involvement from Ki Corporation also suggests stability and reduced competition for the acquisition, further supporting the Buy recommendation.