Canaccord Genuity analyst Mark Rothschild upgraded the rating on Storagevault Canada (SVI – Research Report) to a Buy today, setting a price target of C$4.50.
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Mark Rothschild has given his Buy rating due to a combination of factors including the stabilization of acquired properties which is expected to boost cash flow growth in 2025. The company’s basic funds from operations (FFO) per share increased by 5% year-over-year in the latest quarter, aligning with estimates and surpassing consensus expectations. This growth is driven by a 3.3% increase in same-property net operating income (NOI), where higher rental rates compensated for a drop in occupancy.
Additionally, future growth is anticipated as the company plans to refinance high-cost variable rate debt with more affordable fixed rate mortgages. Despite some economic concerns and a slower population growth impacting near-term performance, StorageVault Canada is trading at an attractive valuation, presenting a compelling entry point. The stock is trading at a significant discount to its net asset value (NAV) estimate, making it an appealing investment compared to its US peers. Therefore, Rothschild has upgraded the stock from Hold to Buy, with a target price adjustment reflecting this perspective.