Public Storage initiated with a Sector Perform at Scotiabank

Scotiabank analyst Nicholas Yulico initiated coverage of Public Storage (PSA) with a Sector Perform rating and $267 price target. The firm, which also started Extra Space Storage (EXR) with a Sector Underperform rating, thinks both stocks will face relative valuation pressure based on its “more negative” 2024-2025 funds from operations per share growth outlook for Storage REITs than for U.S. REITs overall, the analyst tells investors.