NEW YORK (TheStreet) -- Shares of Extra Space Storage (EXR) - Get Report are rising, up 0.17% to $65.52 after BMO Capital raised its 2015 earnings estimates to $2.96 from $2.95, with 2016 earnings estimates increased to $3.31 from $3.12.
Extra Space Storage is a fully integrated, self-administered and self-managed real estate investment trust (REIT) that owns, operates, manages, acquires, develops and redevelops professionally managed self-storage properties and stores.
The firm maintained its "market perform" rating with a price target of $70 on the stock.
"Extra Space Storage should be able to boost the yield relatively quickly by integrating the properties into its technology-driven platform and boost internet search presence," BMO Capital analysts said.
Another positive for the transaction is that Extra Space Storage has a better cost of capital than most potential buyers, which improves the accretion potential, BMO Capital added.
Extra Space Storage is expected to announce its second quarter earnings results on July 29 after the market closes.
Separately, TheStreet Ratings team rates EXTRA SPACE STORAGE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXTRA SPACE STORAGE INC (EXR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EXR's revenue growth has slightly outpaced the industry average of 8.4%. Since the same quarter one year prior, revenues rose by 15.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 43.75% and other important driving factors, this stock has surged by 30.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EXR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- EXTRA SPACE STORAGE INC has improved earnings per share by 43.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EXTRA SPACE STORAGE INC increased its bottom line by earning $1.54 versus $1.51 in the prior year. This year, the market expects an improvement in earnings ($1.87 versus $1.54).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 43.9% when compared to the same quarter one year prior, rising from $37.34 million to $53.74 million.
- 45.93% is the gross profit margin for EXTRA SPACE STORAGE INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 29.73% is above that of the industry average.
- You can view the full analysis from the report here: EXR Ratings Report