PSA - CubeSmart stock edges up after Raymond James upgrades to Strong Buy

CubeSmart (NYSE:CUBE) shares are rising 1.5% in Monday premarket trading after Raymond James analyst Jonathon Hughes upgrades the self-storage REIT to Strong Buy from Outperform.  As shares of CUBE fall more than 25% YTD, Hughes thinks the recent selloff provides investors with an attractive risk-reward setup, he wrote in a note.  Specifically, "we believe the recent weakness is due to a combination of profit-taking – self storage remains the best-performing REIT sector in the post-pandemic world – and fears over customer behaviors – notably move-outs and rents – returning to more normal levels, though we have seen little change through April," Hughes explained. Also, CUBE is Raymond James' top pick, followed by its rival Public Storage (PSA), as "the diversification offered by self storage REIT portfolios across cities, states, and tenants reduces volatility and risk," Hughes said. In turn, self-storage REITs are seen as a "recession-resilient" asset class, he added.    See why SA contributor

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CubeSmart stock edges up after Raymond James upgrades to Strong Buy