A Look At Extra Space Storage (EXR) Valuation After Bank Of America Downgrade

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Extra Space Storage (EXR) was downgraded by Bank of America from Neutral to Underperform, raising concerns about demand recovery despite stable fundamentals. The company’s stock shows a modest valuation gap and slight discount to analyst targets, trading at US$140.01 against a fair value of US$150.95. The analysis suggests the bullish narrative relies on profit margin shifts, fee income growth, and a richer future earnings multiple, while potential risks include property taxes and self-storage supply in key markets.

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