Sovran Self Storage Shares Fall As BMO Downgrades

BMO Capital Markets' Paul Abornato downgraded Sorvan Self Storage

from Outperform to Market Perform while increasing the price target from $114.00 to $120.00. "We still believe the Self Storage REIT sector will likely experience strong internal growth throughout 2016 and into 2017" the analyst stated. Abornato cited strong occupancies heading into the busy season and projected healthy rent increases for strong Reit sector growth.

Abornato notes, however, that "the risk/reward profile of SSS has shifted as the stock's valuation relative to the REIT universe has risen from discount to premium." The company's discount relative to Storage REIT peers has narrowed from 13% to 11.5% according to the analyst. In response to these concerns, Albornato recommended to stick to best in class names such as

and

.