PSA stock rose more than 5% in after-hours trading on January 21, 2022, after a string of positive analysts comments and an increase in demand for their storage services.
Public Storage price target raised to $380 from $353 at Truist
On January 18, 2022, Truist analyst Ki Bin Kim raised the firm’s price target on Public Storage to $380 from $353 and keeps a Buy rating on the shares as part of a broader research note previewing the 2022 outlook for REITs. The sector should perform roughly in line with the broader market as an improving economy supports healthy occupancy and rent growth, while rising interest rates weigh on the cost of capital and already-elevated REIT stock valuations, the analyst tells investors in a research note.
Public Storage upgraded to Buy from Hold at Jefferies
On January 10, 2022, Jefferies analyst Jonathan Peterson upgraded Public Storage to Buy from Hold with a price target of $433, up from $366. The company has “flexed its balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity. muscles” in 2021 to complete a record level of acquisitions, which are immediately accretive but also carry significant embedded growth through stabilization, Peterson tells investors in a research note. As such, the analyst believes Public Storage should materially improve its internal growth in the coming year.
Public Storage upgraded to Overweight on strong demand at JPMorgan
On December 20, 2021, JPMorgan analyst Michael Mueller upgraded Public Storage to Overweight from Neutral with a price target of $385, up from $359. Public storage continues to benefit from a “strong demand picture and still relatively muted move-out activity,” which is translating into strong organic growth, Mueller tells investors in a research note. Meanwhile, Public Storage has deployed a “significant amount” of capital in recent years toward acquisitions with significant lease-up potential, and this should help it to sustain a “healthy” overall growth pace as core growth moderates over time, adds the analyst.
Public Storage upgraded to Buy from Neutral at Citi
On December 14, 2021, Citi analyst Michael Bilerman upgraded Public Storage to Buy from Neutral with a price target of $400, up from $353. The real estate sector should continue to benefit from overall economic growth leading to better demand for space, increasing market rents and continued “robust” private market activity all backed by continued supportive fiscal and monetary policies, Bilerman tells investors in a research note. He believes the real estate investment trust sector is well positioned to outperform in 2022 and estimates REITs total return at 10%-15% over the next 12 months. From a sector perspective, the analyst’s largest overweight positions fall within the industrial, residential, lodging, gaming and shopping center sectors, while he remains underweight office, traditional net lease, diversified healthcare and malls.
Public Storage Announces Closing of the All Storage Acquisition Amid Significant Growth Acceleration
On December 2, 2021, Public Storage (NYSE:PSA), the leading owner, acquirer, developer, and operator of self-storage properties, announced today that it has closed on the acquisition of All Storage, a high-quality self-storage portfolio, for $1.5 billion.
The transaction adds 56 self-storage properties (7.5 million net rentable square feet) primarily located in the growing Dallas-Fort Worth market. The 52 properties in Dallas-Fort Worth add prominent locations in new, high-growth submarkets in addition to complementary locations in Public Storage’s existing submarkets. With the addition of the portfolio and additional properties recently closed or under contract, the Company’s Dallas-Fort Worth presence is unmatched in coverage and quality, with nearly 200 locations and 17 million net rentable square feet.
“Dallas-Fort Worth’s business, consumer, and resident friendly nature drives strong demographic and economic growth that generates outsized demand for self-storage,” said Mike McGowan, Public Storage’s Senior Vice President of Acquisitions. “We are committed to serving the market’s future growth through further property acquisitions, development, redevelopment, and third-party management.”
Public Storage funded the acquisition by utilizing its growth-oriented balance sheet to issue $1.75 billion of senior unsecured notes and quickly closed the transaction in a well-coordinated effort with the All Storage team. The Company expects the transaction will be immediately accretive to FFO per share with accretion accelerating through stabilization. A presentation with further detail is available on the Investor Relations section of PublicStorage.com.
The acquisition reflects Public Storage’s continued execution of its opportunistic growth strategy. Since the start of 2019, the Company has expanded its portfolio by 36 million net rentable square feet, or 22%, through $7.1 billion of acquisitions, development, and redevelopment, including properties under contract. The Company has significantly accelerated growth with $5.1 billion of acquisitions expected to close during 2021. Recent acquisition and development properties in the Company’s non-same store pool now account for more than 25% of the total portfolio, providing significant growth for Public Storage and its stakeholders as the properties lease up over the next few years.
“We are pleased to welcome the high-quality All Storage portfolio and team to Public Storage’s industry-leading brand and platform,” said Joe Russell, Public Storage Chief Executive Officer. “I am proud of our team’s acceleration of our opportunistic growth strategy. We continue to see broad opportunity for growth across our property acquisition, development, redevelopment, and third-party management platforms.”
Raymond James ups Public Storage to Strong Buy on improved self storage outlook
On December 2, 2021, Raymond James analyst Jonathan Hughes upgraded Public Storage to Strong Buy from Outperform with a price target of $375, up from $350, citing increased conviction in the outlook for the self storage sector into next year. His revised 2022 earnings estimates are now about 4% above consensus due to better-than-expected outlooks for occupancy, rates, expenses, and external growth activity in the sector, noted Hughes. Though the stocks have traded sideways over the past month, self storage continues to be the best-performing REIT sector in the post-pandemic world, noted Hughes, who sees a scenario where fundamentals could easily surpass expectations for the next several years.
📺 Public Storage Goes Behind the Orange Door[embedyt] https://www.youtube.com/watch?v=k6sZl9mw_7Q[/embedyt]
📈 PSA Stock Technical Analysis
The long term trend is positive and the short term trend is negative. It is probably better to wait until this picture becomes clearer. PSA is one of the better performing stocks in the Equity Real Estate Investment Trusts (REITs) industry, it outperforms 94% of 227 stocks in the same industry. PSA is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so PSA slightly outperforms the market at the moment.
There is a support zone ranging from 347.10 to 353.34. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also a support zone ranging from 324.28 to 326.06. This zone is formed by a combination of multiple trend lines in multiple time frames.
There is a resistance zone ranging from 374.55 to 374.58. This zone is formed by a combination of multiple trend lines in multiple time frames.
PSA has an excellent technical rating and also presents a decent setup pattern. The Setup Rating of PSA stock is 6 out of 10. Prices have been consolidating lately. There is a support zone below the current price at 353.34, a Stop Loss order could be placed below this zone. Click here to sign up for email alerts on when PSA stock has a Setup Rating of 8 or higher.