Wells Fargo analyst Eric Luebchow maintained a Sell rating on National Storage Affiliates (NSA – Research Report) yesterday and set a price target of $38.00.
Eric Luebchow has given his Sell rating due to a combination of factors impacting National Storage Affiliates. Despite some positive signs, such as an optimistic same-store guide and potential improvements in occupancy rates, there remains significant uncertainty in the housing demand and move-in rate improvements. This uncertainty makes larger-cap peers more attractive in comparison.
Additionally, NSA’s financial leverage, at approximately 6.5x, limits its flexibility in acquisitions and dispositions, making it less adaptable than its peers. The company’s aggressive same-store guidance and its exposure to the housing market further elevate the risks. Given these factors and the current valuation at 17-18x EBITDA, Luebchow prefers larger-cap peers that offer better visibility on demand inflection.
Luebchow covers the Real Estate sector, focusing on stocks such as American Tower, Digital Realty, and Equinix. According to TipRanks, Luebchow has an average return of 5.7% and a 53.05% success rate on recommended stocks.
In another report released on February 27, Evercore ISI also maintained a Sell rating on the stock with a $41.00 price target.