NEW YORK (TheStreet) -- Public Storage (PSA) continues to its ratings upswing this month with the news released Monday that Macquarie has given it an "outperform" rating in a research note.
Earlier this month analysts are Argus raised their price target on Public Storage shares from $180.00 - $190.00. Public Storage opened at $168.17 on Monday. Public Storage shares have a 52 week low of $145.04 and 52-week high of $176.68.
TheStreet Ratings team rates PUBLIC STORAGE as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PUBLIC STORAGE (PSA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, good cash flow from operations 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:
- PSA's revenue growth has slightly outpaced the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 9.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- PUBLIC STORAGE has improved earnings per share by 15.6% 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, PUBLIC STORAGE increased its bottom line by earning $4.89 versus $3.84 in the prior year. This year, the market expects an improvement in earnings ($5.28 versus $4.89).
- Net operating cash flow has increased to $390.68 million or 18.42% when compared to the same quarter last year. In addition, PUBLIC STORAGE has also modestly surpassed the industry average cash flow growth rate of 8.73%.
- The gross profit margin for PUBLIC STORAGE is rather high; currently it is at 53.52%. Regardless of PSA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PSA's net profit margin of 55.12% significantly outperformed against the industry.
- You can view the full analysis from the report here: PSA Ratings Report