By Senad Karaahmetovic

Raymond James analyst Jonathan Hughes upgraded CubeSmart (NYSE:) to Robust Purchase following the current selloff.

The analyst additionally minimize the value goal to $52.00 from $60.00 on CUBE inventory to mirror a number of compression.

“Regardless of the constructive elementary updates, the self storage REITs haven’t been spared within the current sell-off and have truly been the among the many largest underperformers vs. the REIT common QTD (-740 bp). We consider the current weak point is because of a mixture of profit-taking – self storage stays the best-performing REIT sector within the post-pandemic world – and fears over buyer behaviors – notably move-outs and rents – returning to extra regular ranges, although we have now seen little change by means of April,” Hughes mentioned in a consumer be aware.

CUBE is a prime decide at Raymond James, adopted by Public Storage (NYSE:). Total, the analyst stays bullish on the sector regardless of the current pullback.

“[We] consider the declining new provide influence – that has seemingly declined additional given the current shift in macroeconomic and capital market situations – creates a situation the place fundamentals can surpass expectations for the following a number of years. That mentioned, our revised earnings estimates are usually not as optimistic as they might have been a number of weeks in the past as we now incorporate some influence from a possible consumer-driven recession,” the analyst added.

CUBE inventory value is up 3.3% heading into the New York open at the moment.