Wolfe Research starts CubeSmart at Outperform on ‘differentiated’ portfolio

Wolfe Research analyst Keegan Carl initiated coverage of CubeSmart with an Outperform rating and $48 price target. The company offers a differentiated self-storage portfolio relative to its broader peer group with an emphasis on the Acela Corridor, which should be better insulated from a potential supply shock in the near-term, the analyst tells investors in a research note, also stating that historically, excess supply has been the largest driver of self-storage underperformance. Carl adds that CubeSmart’s occupancy has held relatively well compared to some of its broader peers, and he expects it to benefit from its elevated exposure to heavily populated MSAs in times of operating difficulty.