National Storage Affiliates stock price target lowered at Evercore ISI

Investing.com - Evercore ISI has reduced its price target on National Storage Affiliates Trust (NYSE:NSA) to $31.00 from $37.00 while maintaining an Underperform rating on the stock. The REIT, which currently trades near its 52-week low of $29.02, offers a substantial 7.74% dividend yield and has maintained dividend growth for 10 consecutive years, according to InvestingPro data.

The firm cited a higher initial capitalization rate assumption of 6.15%, compared to its previous 5.9% estimate, in its forward net asset value calculation.

Evercore ISI also applied a 13x multiple to its 2026 adjusted funds from operations (AFFO) estimate in determining the new price target.

The research firm noted that while NSA stock has significantly underperformed year-to-date and its valuation appears inexpensive, there are "limited near-term catalysts" to drive share price appreciation.

Evercore ISI acknowledged that its assumptions could prove conservative if the housing market recovers faster than expected, but added that improvements in both occupancy and rental rates "clearly has a ways to go" and a sharp housing rebound seems unlikely in the near term.

In other recent news, National Storage Affiliates Trust reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.10, which did not meet the expected $0.15. However, the company achieved revenue of $188.35 million, surpassing the forecasted $184.09 million. Additionally, Morgan Stanley downgraded National Storage Affiliates Trust's stock rating from Equalweight to Underweight, citing performance challenges over the past three years. The firm also lowered its price target from $39.00 to $30.00. Analysts pointed out a significant occupancy decline for the company, ranging from -200 to -500 basis points year-over-year, which is more severe than its competitors. Morgan Stanley expressed concerns about the company's 2025 guidance, suggesting it might be at risk. They anticipate a potential cut in the second quarter of 2025. These developments highlight ongoing challenges for National Storage Affiliates Trust as it navigates market expectations and performance hurdles.

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