Extra Space Storage upgraded to Outperform from Sector Perform at Scotiabank

Scotiabank analyst Nicholas Yulico upgraded Extra Space Storage (EXR) to Outperform from Sector Perform with a price target of $146, down from $165. The firm sees attractive valuations in the self-storage real estate investment trust space. The stock is down double-digits this year, creating an attractive entry point to buy a leading operating platform in the space at a “discounted” valuation, the analyst tells investors in a research note. Scotiabank says that even with the risk of weaker economic activity, it sees a “manageable additional negative impact” in a downside recession scenario. The stock’s valuation should improve “once investors look towards future growth acceleration,” it contends.