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Neutral Outlook for National Storage Affiliates Amid Mixed Performance Indicators

Neutral Outlook for National Storage Affiliates Amid Mixed Performance Indicators

Ronald Kamdem, an analyst from Morgan Stanley, maintained the Hold rating on National Storage Affiliates (NSAResearch Report). The associated price target remains the same with $40.00.

Ronald Kamdem has given his Hold rating due to a combination of factors influencing National Storage Affiliates. The company’s recent financial performance showed a core FFO that surpassed expectations, primarily due to better management fees and general administrative expenses. However, the guidance for 2025, while better than anticipated in some areas like same-store revenue and NOI, fell short in core FFO per share compared to consensus estimates.
Additionally, while NSA has initiated a substantial share repurchase program and entered a new sales agreement, these moves are not binding, which adds a layer of uncertainty. The acquisition of new properties indicates growth, but the overall mixed key performance indicators, such as a decline in occupancy rates, suggest a cautious approach. These elements combined lead to a neutral outlook, justifying the Hold rating as the stock price is expected to remain stable in the near term.

In another report released yesterday, Truist Financial also maintained a Hold rating on the stock with a $39.00 price target.

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