Morgan Stanley Downgrades Extra Space Storage Price Target to $145.00
December 25, 2022
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Extra Space Storage ($NYSE:EXR) is a leading self-storage real estate investment trust (REIT) that owns, operates, develops, and acquires self-storage properties in the United States. This means that Morgan Stanley believes that the stock of Extra Space Storage is overvalued and will not reach the previous price target. This is in contrast to the positive outlook that Morgan Stanley had for the company in the past. The downgrade from Morgan Stanley is due to a number of factors. Firstly, the company’s recent performance has been weaker than expected. Despite a strong second quarter, Extra Space Storage’s occupancy rate has declined and its same-store sales have been sluggish.
Additionally, the company’s ability to raise rents has been hampered due to an increase in competition in the self-storage market. Furthermore, Morgan Stanley believes that the current valuation of Extra Space Storage is too high given its current performance and outlook. The analysts at Morgan Stanley believe that the stock is overvalued and that investors should wait for a more attractive entry point before buying shares of the company. It is important for investors to keep an eye on the company’s performance and outlook in order to determine if it is a good investment opportunity.
Price History
At the time of writing, news regarding Extra Space Storage (EXTRA SPACE STORAGE) has been mostly positive. This news caused the stock to open at $148.6 and close at $146.7, a decrease of 1.7% from the previous closing price of 149.3. This price target decrease follows a significant increase in EXTRA SPACE STORAGE’s stock price since early November.
However, the downgrade from Morgan Stanley has caused a sudden drop in the stock’s price. Since the start of December, EXTRA SPACE STORAGE’s stock has been relatively range-bound, with a notable dip in late December and again after the Morgan Stanley news. It is possible that this price target downgrade is only a temporary setback, and that the stock could soon rebound as analysts continue to monitor the company’s performance. EXTRA SPACE STORAGE is one of the largest storage REITs in the United States, and is renowned for its focus on customer service and innovation. Despite the recent price target downgrade, investors remain optimistic about the company’s long-term prospects. It remains to be seen how the stock will react to this news in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for EXR. More…
| Total Revenues | Net Income | Net Margin |
| 1.84k | 924.47 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EXR. More…
| Operations | Investing | Financing |
| 1.13k | -837.54 | -166.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for EXR. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 11.84k | 7.77k | 24.27 |
Key Ratios Snapshot
Some of the financial key ratios for EXR are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 54.4% |
| FCF Margin | ROE | ROA |
| – | – | – |
VI Analysis
The company has a strong financial foundation and a solid long-term potential, which is reflected in its fundamentals. The VI App provides a simplified analysis of these fundamentals, allowing investors to make better informed decisions. According to the VI Risk Rating, Extra Space Storage is low risk in terms of both financial and business aspects. The app has detected one risk warning in the balance sheet, which registered users can access for more information. Extra Space Storage is well capitalized, with healthy current and quick ratios, a comfortable debt to equity ratio, and significant cash reserves. The company’s net income, EBITDA, and operating cash flow are all positive, indicating a reliable and stable business. Additionally, the company’s return on equity and return on assets demonstrate strong profitability. Extra Space Storage also has an impressive dividend yield history and pays out dividends regularly, making it an attractive investment for dividend investors. Overall, Extra Space Storage’s fundamentals make it a low-risk investment. The company’s financial health and business stability are both good indicators of its long-term potential, making it a sound opportunity for investors. More…
VI Peers
Extra Space Storage Inc is one of the leading self-storage providers in the United States. The company has a large network of facilities across the country and offers a wide range of storage solutions to its customers. Extra Space Storage Inc competes with other self-storage providers such as Global Self Storage Inc, National Storage Affiliates Trust, and Life Storage Inc.
– Global Self Storage Inc ($NASDAQ:SELF)
Global Self Storage is a publicly traded real estate investment trust that owns, operates, and develops self storage properties. Headquartered in New York, the company has over 500 storage facilities across the United States, Canada, and the United Kingdom. Global Self Storage is one of the largest self storage companies in the world with over 30 million square feet of storage space.
– National Storage Affiliates Trust ($NYSE:NSA)
National Storage Affiliates Trust is a publicly traded real estate investment trust focused on the ownership, operation and acquisition of self storage properties located throughout the United States. The company has a market cap of $3.68 billion as of March 2022. National Storage Affiliates Trust is headquartered in Denver, Colorado.
– Life Storage Inc ($NYSE:LSI)
As of 2022, Life Storage Inc has a market cap of 8.69B. The company is a self storage company that operates in the United States. The company has over 850 locations in 38 states.
Summary
Investing in Extra Space Storage (ESS) can be a great way to gain exposure to the self-storage industry. ESS is a self-storage real estate investment trust (REIT) that owns, operates, and develops self-storage facilities in the United States and Puerto Rico. Although Morgan Stanley recently downgraded their price target to $145.00, many analysts still maintain a bullish outlook on ESS’s long-term prospects. For investors looking to gain exposure to the self-storage industry, ESS is a great option. It offers a diversified portfolio of properties, strong financials, and a high dividend yield.
Additionally, the company has experienced strong growth in recent years and is well-positioned for future growth. With its attractive fundamentals and potential for long-term growth, ESS is a great option for investors looking to benefit from the self-storage industry.
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