Public Storage Started as a “Sell” at Cantor Fitzgerald (PSA)

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Self-storage REIT Public Storage ( PSA ) on Friday caught some sharply negative commentary from analysts at Cantor Fitzgerald.

The firm initiated coverage on PSA with a "Sell" rating and a $133.50 price target, which suggests a 4% downside to the stock's Thursday closing price of $139.25.

A Cantor analyst commented, "Public Storage is the industry behemoth, with a ironclad balance sheet and ample liquidity. The stock trades with premiums to net asset value ( NAV ) given insulation from capital markets and defensive cash flows. Although well positioned for above-average growth longer-term, recent core performance has only slightly topped smaller peers. Given current pricing, we believe the stock to be fully valued. Our broad REIT call underwrites burn-off of the 'safety & liquidity premium' across 2012; as such, PSA could underperform peers."

Public Storage shares were unchanged in premarket trading Friday.

The Bottom Line
Shares of Public Storage ( PSA ) have a 2.73% dividend yield, based on last night's closing stock price of $139.25. The stock has technical support in the $130-$132 price area. The shares are trading right at all-time high levels.

Public Storage ( PSA ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: NAV , PSA

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