Buy Rating Affirmed for Extra Space Storage Amid Strong Performance and Upbeat Outlook

Goldman Sachs analyst Caitlin Burrows has maintained their bullish stance on EXR stock, giving a Buy rating on May 1.

Caitlin Burrows has given her Buy rating due to a combination of factors surrounding Extra Space Storage’s solid operational performance and promising outlook. She acknowledges that the company’s first-quarter results for 2024 met expectations and that management has maintained its guidance for the full year, which notably does not yet account for any potential recovery in the housing market. Burrows also highlights that a significant portion of tenants use storage during apartment-to-apartment moves, a demand driver that the market may be undervaluing. This insight, combined with the company’s stable occupancy rates, underpins her positive assessment.
Furthermore, Burrows points to the strength of Extra Space Storage’s occupancy rates and the company’s effective existing customer rate increase (ECRI) program. With high occupancy, she believes Extra Space Storage is well-positioned to quickly maximize revenue through rate increases, which are easier to implement than filling new physical spaces. She also mentions that web-based customers have proven to be more loyal over the long term. These strategic advantages contribute to her Buy rating, as they signal the company’s capacity to leverage current market conditions to enhance profitability.

In another report released on May 1, Barclays also assigned a Buy rating to the stock with a $157.00 price target.

EXR’s price has also changed moderately for the past six months – from $119.110 to $146.670, which is a 23.14% increase.

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Extra Space Storage (EXR) Company Description:

Extra Space Storage, Inc. is a real estate investment trust. It operates through the following segments: Self-Storage Operations and Tenant Reinsurance. The Self-Storage Operations segment includes rents The Tenant Reinsurance segment consists of reinsurance of risks relating to the loss of good stored by tenants in the firm’s stores. The company was founded by Kenneth Musser Woolley on April 30, 2004 and is headquartered in Salt Lake City, UT.