Cubesmart Receives a Buy from FBR Capital

By Austin Angelo

FBR Capital analyst David Corak reiterated a Buy rating on Cubesmart (NYSE: CUBE) today and set a price target of $32. The company’s shares opened today at $25.49, close to its 52-week low of $24.48.

Corak commented:

“CUBE posted a beat-and-raise quarter, top-line revenue was the highest reported of its peers thus far at +6.2%, margins improved 200 bps, occupancy increased 40 bps, and lease-ups remained strong. The company acquired or put under contract $132.7 million of assets since June 30, increased its acquisition guidance, added 17 properties to its management platform, and added two projects to its development pipeline. Taking a step back, it sounds like a respectable quarter, especially in comparison to its peers that reported earlier this week; and yet, the stock traded down -5.7% today on results and commentary from its peers. While we think some of the sell-off was warranted, we believe the recent volatility in the market and the slowdown in storage fundamentals creates an opportunity to generate alpha within the sector. We think this is especially true for CUBE, which is both outperforming its peers today and creating what we believe will be a best-in-class portfolio tomorrow.”

According to TipRanks.com, Corak is a 3-star analyst with an average return of 2.1% and a 47.6% success rate. Corak covers the Financial sector, focusing on stocks such as National Storage Affiliates Trust, Bluerock Residential Growth, and National Retail Properties.

Currently, the analyst consensus on Cubesmart is Moderate Buy and the average price target is $32, representing a 25.5% upside.

In a report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $33 price target.

The company has a one year high of $33.52 and a one year low of $24.48. Currently, Cubesmart has an average volume of 1.81M.

Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. Most recently, in August 2015, Timothy M. Martin, a the CFO of CUBE sold 110,046 shares for a total of $2,887,057.

CubeSmart operates as a self-managed and self-administered real estate investment trust with its operations conducted solely through CubeSmart LP and its subsidiaries. It focuses primarily on the ownership, operation, management, acquisition, and development of self-storage facilities. The company was founded in July 2004 and is headquartered in Malvern, PA.