Analysts at National Bank have initiated coverage on SmartStop Self Storage with an Outperform rating, setting a price target of $39. The rating is primarily attributed to the significant discount observed in the stock’s current trading and IPO pricing, which presents a notable opportunity. This discount is highlighted by a high implied capitalization rate compared to its peers in the U.S. and Canadian markets.
Despite this positive outlook, the firm acknowledges that the company’s success hinges on effective execution. Although SmartStop's management has demonstrated a strong ability to expand portfolios, navigating the current volatile macroeconomic environment remains a challenge.
