Update shared on04 Sep 2025
Analysts have largely maintained their price target for Public Storage at $322.74, as cautious optimism about stabilized fundamentals, management’s positive outlook, and international expansion opportunities offset near-term concerns over weaker occupancy and move-in trends.
Analyst Commentary
- Bearish analysts trimmed price targets to reflect Q2 results that showed stability in the storage market, but highlighted weaker occupancy and move-in rate trends—particularly with negative shifts in June and July.
- Bullish analysts remain constructive, citing expectations that fundamentals have bottomed and that guidance could see select raises, despite muted near-term growth and recent data volatility.
- Updates to models and price targets also factor in management's details on market performance, especially the influence of the Los Angeles market on 2025 guidance and ongoing acquisition opportunities.
- The revised non-binding offer to acquire Abacus Storage King signals potential for international growth and expanded competitive positioning, contributing to longer-term strategic value.
- Some firms see the market’s negative reaction as likely overdone, pointing to ongoing sector stability and Public Storage’s proven track record in both domestic and international operations.
What's in the News
- Public Storage has completed its share repurchase program announced in 1998, with 24,448,781 shares repurchased (19.99%) for $879.1 million; no shares were repurchased from April 1, 2025 to July 30, 2025.
- The company raised earnings guidance for 2025, projecting revenue growth of (1.3)% to 0.8% and net operating income growth of (2.6)% to 0.3%, both above prior guidance.
- Consolidated Non-Same Store net operating income is now guided to $465,000 to $475,000 (previously $444,000,000 to $464,000,000).
- Ancillary net operating income guidance has increased to $200,000 to $205,000 from $198,000,000 to $203,000,000.
Valuation Changes
Summary of Valuation Changes for Public Storage
- The Consensus Analyst Price Target remained effectively unchanged, at $322.74.
- The Consensus Revenue Growth forecasts for Public Storage remained effectively unchanged, at 4.3% per annum.
- The Discount Rate for Public Storage remained effectively unchanged, at 7.12%.
Disclaimer
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