Stifel reiterates SmartStop Self Storage stock rating on strong growth

Published 18/06/2025, 13:14
Stifel reiterates SmartStop Self Storage stock rating on strong growth

Stifel reiterated its Buy rating and $40.00 price target on SmartStop Self Storage (NYSE:SMA) Wednesday, citing the company’s strong execution following its initial public offering. Currently trading at $35.48, the stock sits near its 52-week high of $37.74, with analysts setting targets between $36 and $44.

The research firm highlighted that SmartStop’s fundamentals remain superior among public self-storage peers, with robust external growth opportunities still available for the company.

SmartStop issued guidance for 2025 that exceeded market expectations during its inaugural earnings release, demonstrating confidence in its continued performance trajectory.

According to Stifel’s analysis, SmartStop exhibits a 2024-2026 compound annual growth rate of 15.4%, substantially outpacing the self-storage peer average growth of 2.1% during the same period.

The firm noted that SmartStop shares currently trade at a 6.35% implied cap rate, representing approximately 100 basis points discount to its peer set and a 16.7% discount to Stifel’s net asset value estimate of $42.50.

In other recent news, SmartStop Self Storage reported its Q1 2025 earnings, revealing a 3.2% growth in same-store revenue and a 2.3% increase in net operating income, despite a negative earnings per share of -$0.35. The company achieved an ending occupancy rate of 93%, reflecting its strategic focus on technology and acquisitions. Additionally, SmartStop’s Toronto portfolio experienced a 7.0% year-over-year revenue growth in the first quarter of 2025. Raymond (NSE:RYMD) James upgraded SmartStop’s stock rating to Strong Buy, citing the company’s high-quality portfolio and significant growth potential. The firm’s analysis suggests that SmartStop’s margins may expand as the company continues to grow its portfolio. KeyBanc raised its price target on SmartStop to $40.00, following a favorable CAD $500 million private placement. This debt deal, which was better priced than expected, is anticipated to reduce the company’s cost of capital. SmartStop also joined the Russell 3000 Index, enhancing its visibility among institutional investors and marking a significant milestone after its NYSE listing.

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