Extra Space Storage, Inc. ($EXR) Cautious Buy or Hold to $39 Confident Investor Rating: Fair

Company name Extra Space Storage, Inc.
Stock ticker EXR
Live stock price [stckqut]EXR[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Poor
Sales growth Good
EPS growth Good
P/E growth Poor
EBIT growth Good

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $52.3
Target stock price (averages with growth) $49.29
Target stock price (averages with no growth) $31.26
Target stock price (manual assumptions) $36.93

The following company description is from Google Finance: http://www.google.com/finance?q=exr

Extra Space Storage Inc. is a self-administered and self-managed real estate investment trust (REIT). The Company owns, operates, manages, acquires, develops and redevelops professionally managed self-storage facilities. As of December 31, 2011, Extra Space Storage Inc. held ownership interests in 697 operating properties. Of these operating properties, 356 are wholly owned, and 341 are owned in joint venture partnerships. An additional 185 operating properties that are owned by franchisees or third-parties in exchange for a management fee, bringing the total number of operating properties, which it owns and/or manages to 882. The Company operates in three segments: property management, acquisition and development; rental operations, and tenant reinsurance.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. The company has dropped a bit since the last time that I reviewed it. This drop is primarily because of the decrease in growth of P/E. This metric is very hard for the managers of the company to control so I don't want to penalize them too much.  I am leaving the company on the Watch List until the next time I review.  It is one of the few REITs on my list so I want to be slower to penalize.

 

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