Extra Space Storage price target lowered to $167 from $173 at RBC Capital

RBC Capital analyst Brad Heffern lowered the firm’s price target on Extra Space Storage (EXR) to $167 from $173 and keeps a Sector Perform rating on the shares as part of a broader research note previewing 2025 for Storage REITs. Google search data suggests that demand is nearly back to 2019 levels, and while the pandemic likely pulled forward some demand, RBC “struggles” to see consumer interest in storage moving much lower, the analyst tells investors in a research note. The firm adds however that the only obvious upside demand catalyst in the sector is lower mortgage rates, and these have been “largely immune” to the current Fed cutting cycle.