Update shared on 22 Nov 2025
Fair value Decreased 1.33%Analysts have slightly lowered their price target for Extra Space Storage by $2.10 to $155.65. This reflects near-term caution on the housing market, but highlights expectations that improved pricing power and resilient profit margins could support gradual growth ahead.
Analyst Commentary
Recent Street research presents a mixed outlook for Extra Space Storage, reflecting both strategic opportunities and ongoing risks as the company navigates evolving market dynamics.
Bullish Takeaways- Bullish analysts believe reduced new supply in the self-storage sector could drive enhanced pricing power and support top-line growth in coming years.
- Recent upgrades note that risk and reward for the stock have become more favorable after recent underperformance, with a more achievable 2025 outlook.
- Some research points to the company’s resilient margins and the potential for improved operational execution as positive contributors to valuation.
- Despite near-term headwinds, expectations of only modest buy-side estimates into 2026 suggest room for outperformance if fundamentals improve.
- Bearish analysts remain cautious on the sector, citing that any meaningful improvement in fundamentals is unlikely without a decline in mortgage rates and a revival in housing market activity.
- Recent price target reductions reflect ongoing concerns around subdued demand and pricing, especially as broader macro pressures linger.
- Analysts warn that the path to accelerating growth may be gradual and require continued resilience in profit margins as well as disciplined capital deployment.
What's in the News
- Blue Vista Capital Management, UBS’s Unified Global Alternatives Real Estate business, and Extra Space Storage have formed a strategic collaboration with $600 million in buying power to invest in and manage a diversified self-storage portfolio across the U.S. (Key Developments)
- Extra Space Storage revised its 2025 guidance, now forecasting same-store revenue growth between negative 0.25% and positive 0.25%, and net income expectations in the range of $1.04 billion to $1.06 billion. (Key Developments)
- The company reported no share repurchases in the third quarter of 2025 and has completed $8.62 million in buybacks since the announcement in February 2024. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target: Lowered from $157.75 to $155.65, reflecting a modest decline in expected fair value.
- Discount Rate: Increased from 7.57% to 8.05%, indicating a higher implied risk premium.
- Revenue Growth: Slightly improved from -1.31% to -1.28%, signaling reduced concern over revenue declines.
- Net Profit Margin: Edged higher from 34.94% to 35.54%, pointing to expectations of slightly improved profitability.
- Future P/E: Fallen from 38.26x to 35.57x, suggesting a more attractive valuation relative to projected earnings.
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.