Wells cuts Extra Space Storage to Equal Weight as move-in rate pressures persist

As previously reported, Wells Fargo downgraded Extra Space Storage (EXR) to Equal Weight from Overweight with a $175 price target The firm sees some modest downside risk to numbers through 2025 and a competitive move-in rate environment that has created increasingly difficult comps entering 2025. Wells’ change in view is based on move-in rate trends that have continued to trend downward and decline year-over-year at a faster pace than its peers; downside risk to acquired LSI same-store revenues, as potential further revenue “synergies” appear to be further pushed out; and an unfavorable growth-adjusted multiple looking into 2025.