In a report published Tuesday, Morgan Stanley analyst Landan Park upgraded Public Storage PSA to Equal-weight from Underweight, raising its price target from $132.00 to $160.00.
According to the report, record occupancy suggests PSA should benefit from pricing power in 4Q13 and 2014 and PSA's strong balance sheet allows for ongoing accretive acquisitions. This is balanced by potential expense growth and modest multiple contraction ahead.
“Near peak occupancy levels should drive pricing power in 2014 and our model reflects an uptick in rents by 5% y/y from the 3% seen during the past few quarters, in line with prior cycles,” the report noted. “In addition, PSA's cost of capital advantage versus private peers and multiple sources of funding should enable continued accretive external growth in 2014.”
PSA closed Monday at $153.96.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in