Life Storage downgraded to Neutral from Buy at Citi

Citi analyst Smedes Rose downgraded Life Storage (LSI) to Neutral from Buy with an unchanged price target of $126. While timeline and tenor of takeover negotiations with Public Storage (PSA) remain uncertain, there could eventually be a higher offer price from here, but believe upside in Life Storage shares "is likely to be limited for now," the analyst tells investors in a research note. Citi thinks there could be meaningful longer-term upside to a combination of the two entities and would encourage management to enter constructive negotiations. It downgraded Life Storage on valuation following the recent rally.