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Investing.com - BMO Capital initiated coverage on StorageVault Canada (TSX:SVI) (OTC:SVAUF), a $1.27 billion market cap self-storage operator, with an Outperform rating and a price target of C$5.50. According to InvestingPro data, the stock currently trades at a high EBIT multiple of 22.4x.
The research firm highlighted StorageVault’s position as the leader in Canadian self storage, noting the company’s long-term track record of compounding earnings with a 2016-24 FFOPS CAGR of 23%. The company maintains strong revenue growth at 7.9% over the last twelve months, though InvestingPro analysis indicates current trading levels exceed Fair Value.
BMO Capital expects this earnings growth trend to continue, supported by both organic growth and external acquisitions, along with what it described as an experienced and aligned management team.
The firm believes StorageVault’s operating platform positions the business well to manage through any near-term macroeconomic challenges that might arise.
BMO Capital also pointed to the stock’s attractive valuation relative to U.S. peers, with recent private market comparables providing additional support for its positive outlook.
In other recent news, StorageVault Canada has caught the attention of analysts following its latest financial results. The company reported second-quarter results that were largely in line with expectations, with adjusted funds from operations per share (AFFOPS) exceeding Desjardins’ estimate by 4% and showing a 5% year-over-year increase. These figures indicate a solid performance for the Canadian self-storage firm. In response to these results, Desjardins upgraded StorageVault Canada’s stock from Hold to Buy, while also raising its price target from C$4.25 to C$5.00. This upgrade reflects improved occupancy rates and suggests confidence in the company’s future prospects. These developments are part of the recent activities surrounding StorageVault Canada.
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