On Tuesday, Baird made an adjustment to the price target for National Storage Affiliates Trust (NYSE: NYSE:NSA) shares, increasing it to $39.00 from the previous target of $37.00. The firm maintained a Neutral rating on the stock.
This change comes in the wake of the company's recent announcement of a reduction in its full-year earnings guidance, which is anticipated to impact the stock's performance negatively.
National Storage Affiliates Trust reported quarterly results that were slightly below expectations. The revised earnings guidance, which saw about a 3% decrease, is expected to be a primary focus for investors.
According to Baird, the reduced guidance is a result of a combination of factors, including a sluggish housing market that is affecting customer demand and an influx of new storage supply in the Sunbelt region, both of which are impacting the company's operations.
The completion of the PRO internalization, which took place in July, is another significant development for National Storage Affiliates Trust. Analysts are keen to gain further insights into this transaction during the company's earnings call. Additionally, they are looking for more information on the company's long-term plans for operational recovery.
The adjustment to the price target reflects the analyst's expectations of how these current challenges and strategic moves may influence the company's stock value. Investors and market watchers will likely be monitoring the company's upcoming earnings call for additional details on its strategies and outlook.
In other recent news, National Storage Affiliates Trust has experienced a series of financial adjustments. Evercore ISI revised its outlook on the company, cutting the price target from $40.00 to $38.00, and maintaining an underperform rating. This followed the company's Q2 financial performance, which reported funds from operations (FFO) at $0.62 per share, slightly below the consensus estimate.
The company's same-store net operating income (SS NOI) saw a decline of 5.6%, due to revenue falling at a slower rate of 2.8% and a lower-than-expected expense growth of 4.8%.
National Storage Affiliates Trust also revised its full-year 2024 core FFO outlook downwards by approximately 3.2% at the midpoint, reducing the range from $2.40 - $2.56 to $2.36 - $2.44.
Concurrently, the company's SS NOI guidance for the fiscal year was reduced by 150 basis points at the midpoint to -5.5%. The revised SS revenue growth is now expected to shrink by 3.0%, while expense growth is projected to be 4.25%.
In other company news, Michael Schall was recently elected to the Board of Trustees of National Storage Affiliates Trust. His appointment involves participation in the Audit and Finance Committees, leveraging his extensive executive leadership background and previous board experiences. S
chall's industry expertise is backed by his tenure at Essex Property Trust (NYSE:ESS), where he served in various roles, including President and CEO, and his current board membership at Pebblebrook Hotel (NYSE:PEB) Trust.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.