Morgan Stanley analyst Ronald Kamdem maintained a Hold rating on Extra Space Storage today and set a price target of $155.00.
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Ronald Kamdem has given his Hold rating due to a combination of factors that reflect a cautious outlook on Extra Space Storage’s performance. The company’s core funds from operations (FFO) for the second quarter fell slightly below expectations, and the full-year guidance was reiterated at a level below consensus estimates. This indicates a modest shortfall in financial performance, which may lead to a negative stock reaction.
Additionally, while there were some positive trends such as improved move-in rates, these were offset by weaker year-over-year occupancy improvements and increased property taxes and marketing expenses. The company’s operating metrics showed mixed results, with a slight decrease in average rent and a modest increase in occupancy. These factors combined suggest a stable but not overly optimistic outlook, justifying the Hold rating.
In another report released today, BMO Capital also maintained a Hold rating on the stock with a $165.00 price target.