Barclays upgrades CubeSmart, cuts Public Storage on relative valuation

Barclays turned more constructive on CubeSmart, upgrading it to Overweight and raising its price target to $46 from $45, while downgrading Public Storage to Equal Weight and leaving its target at $349. The call is based on relative valuation after CubeSmart’s weaker year-to-date performance, alongside Barclays’ view that the U.S. self-storage sector is entering an early recovery as new supply eases. Barclays expects gradual improvement in occupancy, rental pricing and FFO growth across the sector, but said elevated mortgage rates may slow the rebound by limiting housing turnover. The firm also lifted Extra Space Storage’s target to $172 from $170, citing stronger move-in rates and easing pricing pressure. Overall, the note is mildly positive for the self-storage group, but it favors CubeSmart over Public Storage on valuation and upside potential.