Extra Storage Space (EXR) is a Salt Lake City- based real estate investment trust that creates offers and provides self-storage facilities. Extra Space Storage Inc is a fully integrated, self-administered and self-managed real estate investment trust. The Company owns, operates, manages, acquires, develops and redevelops professionally managed self-storage properties (stores). The Company operates through three segments: rental operations; tenant reinsurance, and property management, acquisition and development.
The Company’s price target increased to $110 from the original $105 at Jefferies earlier on today’s trade session. The firm reinstated its “buy” rating on the stock. This price target hike is due to Extra Storage Space 32% dividend increase. The share went from 59 cents to 78 cents per share, on a quarterly basis.
The firm wrote in a note to investors, “We remain bullish on fundamentals in 2016 and 2017, and think that robust SSNOI (same store net operating income) growth in the high single-digits / low double digits warrants the premium valuation to the broader REIT sector.”
Jefferies Group’s target price points to a potential upside of 18.37% from the stock’s previous close. Analysts report, Extra Space Storage traded down 0.25% on Tuesday, reaching $92.70. The company’s stock had a trading volume of 353,525 shares. Extra Space Storage has a 52-week low of $64.78 and a 52-week high of $94.22. The stock has a market cap of $11.61 billion and a price-to-earnings ratio of 52.31. The firm’s 50-day moving average price is $90.28 and its 200-day moving average price is $87.36.
Extra Storage Space facilities offer storage space for lease, usually on a month-to-month basis, primarily for personal and business use.
Shares of Extra Storage closed higher by 0.51% to $92.97 on Wednesday.
The company’s strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins.
Experts have summarized opinions about the company’s financial outlook. They explain, “Zacks Investment Research lowered shares of Extra Space Storage from a “buy” rating to a “hold” rating in a report on Wednesday, April 6th. RBC Capital lifted their price objective on shares of Extra Space Storage from $88.00 to $94.00 and gave the company an “outperform” rating in a report on Monday, May 9th. Cantor Fitzgerald reiterated a “hold” rating on shares of Extra Space Storage in a report on Sunday, May 22nd. Finally, Evercore ISI lifted their price objective on shares of Extra Space Storage to $88.00 in a report on Monday, March 21st. One research analyst has rated the stock with a sell rating, six have issued a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the stock. Extra Space Storage currently has an average rating of “Buy” and an average price target of $86.72.
The team believes its strengths outweigh the fact that the company has had somewhat disappointing return on equity.