Public Storage Upgraded to “Buy” at Cantor Fitzgerald; Says Pullback Creates Buying Opportunity (PSA)
Self-storage REIT Public Storage (PSA) on Tuesday caught a big upgrade from analysts at Cantor Fitzgerald.
The firm boosted its rating on PSA from “Hold” to “Buy” and lifted its price target from $143.50 to $160.00. That new target suggests a 12% upside to the stock’s Monday closing price of $142.52.
A Cantor Fitzgerald analyst commented, “Relative YTD underperformance has provided a rare opportunity to accumulate shares of PSA at a modest premium to NAV. The Co’s. high occupancy level should facilitate ever-stronger pricing power that should lead to above-average core NOI growth.”
Accordingly, the firm also lifted its earnings estimates for the company through 2013.
Public Storage shares were mostly flat in premarket trading Tuesday.
The Bottom Line
Shares of Public Storage (PSA) have a 3.09% dividend yield, based on last night’s closing stock price of $142.52. The stock has technical support in the $135-$137 price area. If the shares can firm up, we see overhead resistance around the $145-$147 price levels.
Public Storage (PSA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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