Raymond James analyst Jonathan Hughes has downgraded Public Storage ( NYSE: PSA ) to Outperform from Overweight Tuesday as shares of the self-storage REIT have outpaced its peers YTD, suggesting limited upside from current levels.
"While we remain constructive, we believe now is the time to temper enthusiasm after recent outperformance," Hughes, who remains Overweight on the sector, wrote in a note to clients.
Since the beginning of 2022, Public Storage ( PSA ) +0.9% has been the top dog in terms of share-price appreciation, while Cube Smart ( CUBE ) -8% , Extra Space Storage ( EXR ) -2.7% and Life Storage ( LSI ) -7% all dipped, according to the chart below.
While Hughes lowered his rating in Public Storage ( PSA ), he still noted that "there is meaningful upside to 2022 same-store guidance as this has been unchanged since February, despite strong YTD fundamentals and visibility into 3Q22 revenue growth suggesting a 50 bp sequential acceleration."
"Our same-store and non-same-store assets are poised to deliver strong results through the second half of 2022, positioning us well for whatever may play through as we enter 2023," Public Storage CEO and President Joe Russell said during his company's Q2 earnings call .
Previously, (August 4) Public Storage Q2 FFO of $3.99 beats by $0.07, revenue of $788.9M misses by $221.1M .
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Public Storage downgraded at RayJay after recent outperformance