Aug. 26 at 5:53 PM
Wells Fargo upgraded Extra Space to Overweight from Equal Weight, citing the self-storage operator as better positioned amid sector stabilization after a weak start to the year. Target set at
$160, naming EXR its top pick.
EXR raised move-in rents 1–2% over the past two months, while peers fell 3–5%. Strong occupancy and expected comparable revenue growth from late 2025 into 2026 supported the upgrade. EXR trades at a historical discount and no longer carries a premium over PSA, supporting its valuation.
PSA remains Overweight with a
$320 target, showing stable growth despite LA rent restrictions through early 2026. Expected FFO per share growth of at least 3% in 2026, with upside if rent controls ease.
CUBE stays at Equal Weight with a
$44 target as outlook and comparables improve toward 2026, while NSA faces challenges due to high leverage and weaker real estate markets.
$EXR $PSA $CUBE $NSA