Wells Fargo Initiating SSS Coverage With MP Rating

Wells Fargo is initiating coverage of Sovran Self Storage, Inc. SSS with a Market Perform rating and a 12-month valuation range of $36-38 per share. “While the current valuation appears attractive relative to its public peers and the balance sheet remains solid, fundamentals have lagged and projected earnings growth for 2011 is the lowest of the four public storage REITs, which holds us back from assigning our highest rating on the shares,” Wells Fargo writes. “Our model projects FFO of $2.45 per share in 2010. Our 2011 and 2012 FFO estimates are $2.59 and $2.72 per share, respectively.” Sovran Self Storage currently trades at $36.20.