Update shared on 21 Nov 2025
Fair value Decreased 2.17%CubeSmart’s fair value estimate has been reduced by approximately $1 to $44.29. Analysts cite muted storage fundamentals and less favorable near-term growth prospects as key drivers for the adjustment.
Analyst Commentary
Analyst perspectives on CubeSmart reflect a balance of cautious optimism and notable concerns regarding the company's valuation and growth prospects. The following summarizes key viewpoints from recent research coverage.
Bullish Takeaways- Guidance has been raised for the third consecutive quarter. This highlights management's confidence in operational execution and the near-term outlook.
- Recent updates suggest a "cautious optimism" for 2026, with expectations that reduced storage supply may improve pricing power and support revenue growth.
- There is recognition of notable top-line support from performance in key metropolitan areas, particularly New York City. This market has bolstered recent results.
- Bullish analysts have raised price targets in response to these factors, albeit modestly. This points to resilience in challenging market conditions.
- Muted storage fundamentals and less favorable growth prospects beyond the near term have led some to lower price targets and adopt a more neutral stance.
- Analysts warn that "favorable" capital spending in 2025 could result in difficult year-over-year comparisons. This may create headwinds for net operating income in 2026.
- The outlook for a material uptick in fundamentals is closely tied to a potential revival in the housing market, which appears unlikely without a decline in mortgage rates.
- Updated models reflecting recent results point toward continued caution, with expectations for performance to come in line with sector averages rather than surpass them.
What's in the News
- CubeSmart updated its earnings guidance for the full year 2025, now projecting same-store revenue growth between negative 1.00% and 0.25%. This compares to previous guidance of negative 1.25% to 0.25%. Expected fully diluted earnings per share has also increased slightly, now in the range of $1.46 to $1.50 (Key Developments).
- From July 1, 2025 to September 30, 2025, CubeSmart did not repurchase any shares under its ongoing buyback program. The company completed the quarter with zero shares and zero dollars bought back (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased slightly from $45.28 to $44.29.
- Discount Rate has risen modestly from 7.47% to 7.96%.
- Revenue Growth forecast increased from 4.49% to 5.47%.
- Net Profit Margin estimate declined from 29.58% to 27.20%.
- Future P/E Ratio has edged up from 35.55x to 35.86x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.