UPDATE: BMO Capital Markets Upgrades Public Storage to Market Perform on Sector Outlook
BMO Capital Markets raised its rating on Public Storage (NYSE: PSA) from Underperform to Market Perform and increased its price target to $130.
BMO Capital Markets said, "Since the beginning of 2012, PSA produced total return of 6%, well below the REIT Universe average 16%. Over the same time period its relative valuation has substantially corrected; specifically, PSA's 15% forward AFFO multiple premium to consensus has been erased. Given the limited new supply in self storage and given the technology advantage enjoyed by all large storage operators, we believe all of the storage REITs (including PSA) should enjoy a favorable operating environment for the foreseeable future."
Public Storage closed at $138.63 on Wednesday.
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