Extra Space Storage price target raised to $178 from $172 at KeyBanc

KeyBanc raised the firm’s price target on Extra Space Storage to $178 from $172 and keeps an Overweight rating on the shares. The firm sees potential for the company to generate premium growth in the near and medium term vs. peers as it further extracts value and realizes operating synergies from the LSI merger completed in July 2023. Looking ahead, KeyBanc expects Extra Space Storage’s revenue management platform, third-party management business, and external growth strategies to provide additional support. Moreover, the company’s balance sheet has the most to gain from a reduction in borrowing costs given approximately 20% of its debt stack consists of unhedged variable rate debt.