Wells Fargo upgrades Extra Space amid improving outlook for self-storage

Investing.com -- Wells Fargo raised its rating on Extra Space Storage to Overweight from Equal Weight, saying the self-storage operator looks best positioned among peers as the sector shows signs of stabilizing after a weak start to the year.

The brokerage set a price target of $160 on Extra Space Storage, calling it its top pick in the group.

Extra Space has managed to raise move-in rates by 1% to 2% over the past two months, while most peers have seen declines of 3% to 5%.

Strong occupancy and an expected recovery in same-store revenue growth, improving from late 2025 into 2026, were driving the upgrade.

Wells Fargo noted EXR trades at a discount to its historical average and flat relative to Public Storage, compared with a past premium, which it said gives the stock valuation support.

The brokerage kept Public Storage at Overweight with a $320 target, pointing to steady growth despite Los Angeles rent restrictions through early 2026.

It expects PSA to deliver at least 3% growth in funds from operations per share in 2026, with stronger growth possible if rent controls ease.

CubeSmart was maintained at Equal Weight with a $44 target, as guidance and comps improve into 2026, while National Storage Affiliates faces a tougher path due to high leverage and exposure to weaker housing markets.

For small-cap SmartStop Self Storage, Wells Fargo said growth prospects remain intact, with above-average earnings growth expected into 2026.

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