Raymond James reiterates Strong Buy on SmartStop Self Storage stock with $42 target

Published 18/08/2025, 10:56
Raymond James reiterates Strong Buy on SmartStop Self Storage stock with $42 target

Investing.com - Raymond James maintained its Strong Buy rating and $42.00 price target on SmartStop Self Storage (NYSE:SMA) following investor meetings with management in the Mid-Atlantic region. Currently trading at $35.11, the stock shows a potential 20% upside to the analyst target, according to InvestingPro data.

The firm expressed increased confidence in SmartStop’s value creation strategy after the meetings, highlighting details on the company’s earnings bridge into the second half of 2025, with nearly all upside coming from already-completed activities. The company has demonstrated solid revenue growth of 8.93% over the last twelve months, while maintaining a healthy dividend yield of 4.64%.

Raymond James noted that while SmartStop’s fundamentals remain stable, they experience month-to-month volatility, partly due to the company’s smaller portfolio compared to industry peers.

The firm identified external growth opportunities for SmartStop, including traditional acquisitions, a potential joint venture, and third-party management platform development, while praising management’s execution since the April IPO.

Raymond James views SmartStop’s portfolio and operating platform as comparable to established peers like Public Storage, Extra Space Storage, and CubeSmart, but with advantages in organic growth, margin upside, greater external growth impact due to its smaller size, and discounted valuation. InvestingPro analysis reveals additional insights about SmartStop’s potential, with multiple ProTips indicating expected profitability this year despite current market volatility. For comprehensive analysis, access the detailed Pro Research Report available for this and 1,400+ other US stocks.

In other recent news, SmartStop Self Storage REIT Inc. reported its second-quarter earnings for 2025. The company announced an adjusted funds from operations per share of $0.42, though it posted a net loss of $0.16 per share, which fell short of analysts’ expectations. Revenue for the quarter was reported at $66.82 million. In addition to the earnings report, SmartStop executives showcased their proprietary AI pricing technology at the Ai4 2025 conference in Las Vegas. Chief Operations Officer Joe Robinson and Director of Revenue Rene Hernandez represented the company at the event, which is a significant gathering for business leaders and technology specialists. They were the sole representatives from the self-storage sector at this major artificial intelligence conference. These recent developments highlight SmartStop’s ongoing efforts in both financial performance and technological innovation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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