CubeSmart downgraded to Hold from Buy at Jefferies

Jefferies downgraded CubeSmart (CUBE) to Hold from Buy with a price target of $46, down from $57. The weaker than expected movement in rates during Q4, as indicated by Jefferies’ web scrapes, and the softening of existing customer rate increases are likely to impact CubeSmart’s earnings next year, the analyst tells investors in a research note. In addition, the firm believes the company’s predominantly urban portfolio may not benefit from the housing recovery to the same extent as its peers, potentially putting pressure on its valuation multiples. As such, Jefferies considers CubeSmart shares to be fairly valued at these levels.