Self-storage REIT Public Storage (
) 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 (
) 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
The Bottom Line
Shares of Public Storage (
) 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
Public Storage (
) is not recommended at this time, holding a Dividend.com 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
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