Public Storage initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of Public Storage with a Sector Perform rating and $358 price target. Public Storage is the largest owner of storage assets in the U.S. and “clearly has the best balance sheet in the space,” the analyst tells investors in a research note. However, the firm says the historical lack of focus on third-party management will make the business difficult to scale to a level that will have an impact. RBC sees Public Storage’s operational performance competing on a more heads-up basis with peers going forward, but says the stock’s valuation already reflects this.