Update shared on27 Aug 2025
Fair value Decreased 1.19%Analysts lowered Extra Space Storage’s price target to $157.80, citing muted near-term growth prospects following weak Q2 results, reduced FFO estimates, and a lack of catalysts, despite a more favorable risk/reward and stabilized fundamentals.
Analyst Commentary
- Bullish analysts note favorable risk/reward profile following year-to-date underperformance and see achievable 2025 outlooks with modest buy-side expectations into 2026.
- Bearish analysts cite lowered core FFO per share estimates for 2025 and 2026 after weak Q2 earnings and updated modeling assumptions.
- Market participants point to a lack of near-term catalysts and a reduced growth profile, with the stock trading at a lower valuation multiple relative to peers.
- Some analysts observe that while move-in rate trends have been choppy, fundamentals may have bottomed and selective guidance raises could occur, although near-term growth remains muted.
- Several brokerage initiations and target updates converge on neutral outlooks given current valuation, muted growth prospects, and sector-wide headwinds.
What's in the News
- Goldman Sachs downgraded Extra Space Storage to Neutral from Buy, lowering its price target to $146 from $169, citing a lack of near-term catalysts and a lower growth profile compared to peers (Periodicals).
- The company issued 2025 earnings guidance, projecting same-store revenue growth between -0.5% and +1%, indicating limited revenue momentum (Key Developments).
- Extra Space Storage completed a $8.62 million share buyback, repurchasing 68,585 shares, or 0.03% of shares outstanding, as part of a previously announced program (Key Developments).
- The company was added to the Russell 1000 Defensive Index, supporting its status as a relatively stable, defensive equity (Key Developments).
- Extra Space Storage was also included in the Russell 1000 Value-Defensive Index, aligning it with value-oriented, defensive stocks (Key Developments).
Valuation Changes
Summary of Valuation Changes for Extra Space Storage
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $159.70 to $157.80.
- The Future P/E for Extra Space Storage has fallen from 38.54x to 36.51x.
- The Net Profit Margin for Extra Space Storage remained effectively unchanged, moving only marginally from 35.26% to 35.29%.
Disclaimer
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