Analysts Adjust Public Storage Price Target Amid Market Shifts

Public Storage (NYSE: PSA) saw its price target reduced from $321.00 to $316.00 by analysts at JPMorgan Chase & Co. in a report published on October 29, 2023. The investment firm maintains an “overweight” rating on the real estate investment trust (REIT), indicating a favorable view of the stock despite the adjustment. This revision reflects the dynamic nature of market conditions impacting the self-storage sector.

In addition to JPMorgan, several other brokerages have recently revised their price targets for Public Storage. Scotiabank decreased its price target from $340.00 to $333.00, while also assigning a “sector outperform” rating. Meanwhile, Evercore ISI adjusted its price target down to $315.00 from $317.00 and maintained an “in-line” rating as of November 3, 2023.

Analysts have shown mixed sentiments towards Public Storage. On October 13, Deutsche Bank Aktiengesellschaft upgraded the stock from a “hold” to a “buy” rating, setting a price target of $325.00. Overall, according to data from MarketBeat, the stock currently holds an average rating of “Moderate Buy,” with a consensus target price of $325.21.

Recent Earnings Performance

Public Storage recently reported its earnings results for the third quarter, announcing earnings per share (EPS) of $4.31, surpassing analysts’ expectations of $4.24 by $0.07. The company achieved a return on equity of 35.67% and a net margin of 39.53%. However, quarterly revenue saw a decline of 5.4% compared to the same period last year. For the fiscal year 2025, the company has set its EPS guidance between $16.700 and $17.000.

Investors can also anticipate a quarterly dividend, which is scheduled to be paid on December 30, 2023. Shareholders of record by December 15, 2023 will receive a dividend of $3.00 per share, translating to an annualized dividend of $12.00 and a yield of 4.4%. The company’s current dividend payout ratio stands at 124.61%.

Institutional Investment Trends

Recent activity among institutional investors has also influenced Public Storage’s stock dynamics. Hedge funds have been actively buying and selling shares of the company in recent months. Notably, Private Advisor Group LLC increased its stake in Public Storage by 20.1%, bringing its total to 5,215 shares valued at approximately $1.56 million.

Similarly, PFG Advisors raised its position by 6.4%, now owning 1,455 shares worth about $435,000. Other firms, such as Choreo LLC and Avantax Advisory Services Inc., have also boosted their holdings, contributing to a strong institutional ownership, which currently comprises 78.79% of the stock.

Public Storage, a prominent member of the S&P 500 and FT Global 500, specializes in acquiring, developing, and managing self-storage facilities. As of December 31, 2023, the company operates 3,044 self-storage facilities across 40 states in the United States, encompassing approximately 218 million net rentable square feet. Furthermore, Public Storage holds a 35% equity interest in Shurgard Self Storage Limited, which operates 275 facilities across seven Western European countries.

With ongoing adjustments to market conditions and investor sentiment, Public Storage remains a notable entity in the real estate investment trust sector, attracting attention from both analysts and institutional investors.