Public Storage (PSA) Receives a Hold from Argus ResearchWe are maintaining our HOLD rating on Public Storage (NYSE: PSA). The self-storage industry has historically benefited from city dwellers seeking extra storage space as well as from major life events, such as the death of a spouse, divorce, or downsizing in retirement. However, demand for storage has suffered amid reduced consumer discretionary spending and less mobility due to the tight housing market. We expect consumer discretionary spending and storage demand to lag further until interest and mortgage rates fall. PSA is also facing pressure from industry oversupply and has seen lower rental rates, lower occupancy, and narrower margins in its key same-store segment. In response, the company continues to offer substantial discounts to attract new renters. We would like to see these trends reverse before considering a higher rating.