BMO upgrades Extra Space Storage stock rating on improving supply
BMO Capital upgraded Extra Space Storage (NYSE:EXR) stock rating to Outperform from Market Perform and set a price target of $170.00, indicating a potential 9% increase from its current price of $144.09. The firm's decision is based on the company's strong second-quarter 2026 results, which exceeded expectations. BMO noted that demand remains steady but modest, with housing activity flat to down.
However, supply conditions have been improving, which has historically been the main driver of performance in this sub-sector. The Sunbelt region is also showing improvement and could potentially experience a re-acceleration in 2027. Extra Space has a 4.5% dividend yield and a 23-year history of consistent dividend payments, making it attractive to income-focused investors.
The firm has now made it their top pick, replacing CubeSmart. In contrast, BMO downgraded SmartCentres REIT to Market Perform, citing caution on Canada, which accounts for 9.4% of the company's net operating income.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
