Truist Raises Public Storage (PSA) Price Target to $365 Following Earnings
Truist Financial raised its price target on Public Storage to $365 with a buy rating. The update follows third-quarter revenue of $1.37 billion and a $3 quarterly dividend declaration.
Equities researchers at Truist Financial raised their price target on Public Storage to $365.00 from $317.00, reiterating a buy rating on the real estate investment trust. Truist Financial noted that the target implies a potential upside of 9.53% from the cited share price.
Wall Street opinions on the self-storage operator remain mixed overall. MarketBeat reported that seven analysts rate the stock as a buy and 14 maintain a hold rating, with reports citing an average price target between $325.79 and $328.32. Among other recent research actions, UBS Group lifted its target from $294.00 to $334.00 with a neutral rating, while Royal Bank Of Canada raised its target from $318.00 to $323.00 with a sector perform rating. Conversely, Wall Street Zen downgraded the stock from hold to sell.
The updated target follows Public Storage's earnings release on October 26th. The trust posted third-quarter revenue of $1.37 billion, up .5% year over year and topping consensus projections of $1.34 billion. Earnings per share landed at $1.69, falling short of the $2.49 estimate and down from $4.31 per share in the prior-year period. Net margin reached 37.76% and return on equity stood at 29.93%. Kalkine Media reported that the company raised its full-year guidance and noted accelerating rents during its call.
Capital returns also advanced as the company recently declared its regular quarterly common dividend of $3.00 per share, scheduled for payment on January 8th to shareholders of record as of December 15th. This payment amounts to an annualized dividend of $12.00 and yields 3.6%. The company separately completed a senior notes offering with a maturity of approximately ten years to fund continued portfolio expansion.
Institutional activity shows persistent interest in the stock. Aew Capital Management Inc. established a new stake during the third quarter by acquiring 120,199 shares valued at approximately $33,997,000, making Public Storage roughly 2.2% of its portfolio. Overall, institutional investors and hedge funds control 78.79% of the real estate investment trust's outstanding shares.