Valued at a market cap of $30.4 billion, Extra Space Storage Inc. (EXR) is a Salt Lake City, Utah-based fully integrated real estate investment trust (REIT) that operates as one of the largest self-storage property managers in the United States.
This industrial REIT has considerably underperformed the broader market over the past 52 weeks. Shares of EXR have declined 1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 27.4%. However, on a YTD basis, the stock is up 10.5%, outpacing SPX’s 8.8% rise.
Zooming in further, EXR has also lagged the State Street Real Estate Select Sector SPDR ETF (XLRE), which soared 9.6% over the past 52 weeks. Nonetheless, it has fairly aligned with XLRE’s 10.3% return.
On Apr. 28, shares of EXR surged 1.1% after delivering better-than-expected Q1 results. The company’s total revenue increased 4.4% year-over-year to $856 million, topping analyst estimates by a slight margin. Moreover, its core FFO of $2.04 grew 2% from the year-ago quarter, exceeding consensus expectations of $2.01.
For the current fiscal year, ending in December, analysts expect EXR’s EPS to grow marginally year over year to $8.23. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 20 analysts covering the stock, the consensus rating is a "Moderate Buy," which is based on seven “Strong Buy,” 12 "Hold,” and one "Moderate Sell” rating.
The configuration is slightly more bullish than three months ago, with six analysts suggesting a “Strong Buy” rating.
On May 18, UBS analyst Michael Goldsmith maintained a “Buy” rating on EXR and raised its price target to $158, indicating a 10.2% potential upside from the current levels.
The mean price target of $153.50 suggests a 7.1% premium to its current price levels, while its Street-high price target of $178 implies a 24.2% potential upside.
