CubeSmart initiated with an Overweight at Wells Fargo

Wells Fargo analyst Eric Luebchow initiated coverage of CubeSmart with an Overweight rating and $50 price target. The firm believes CubeSmart’s high-quality portfolio of population-dense markets, favorable leverage/liquidity, and potential to partake in consolidation create attractive risk/reward. Wells also thinks CubeSmart can add 1-time of leverage to its balance sheet for opportunistic M&A, which could drive 3%-5% upside to the firm’s FFO estimates. It could also partake in large-scale strategic M&A, providing some downside protection to the stock.