Hedgeye CEO Keith McCullough is adding Public Storage to the long side of Investing Ideas. Below is a brief note.
Provided that you made your sales late last week (on green), today is a nice day to go shopping on red for names that you didn't think would tap/test the low-end of my Risk Ranges...
One of those names is REITs analyst Rob Simone's Best Idea REIT, Public Storage (PSA). Here's an excerpt from Rob's new REIT research product on the name:
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Takeaway: Positive changes are happening but not priced in Key Takeaways: We can keep this short - Best Idea Long PSA blew out the quarter vs. both Hedgeye and Consensus (see variance chart below), but all that really matters for the stock is that the company inaugurated FY21 FFO guidance with full ranges for all the key drivers (SSRev, SSExp, SSNOI, Development, Acquisitions, etc). Not only does this bring PSA up to par with the other four peers in the space, but it signals management's ongoing commitment to address long-time shareholder gripes regarding engagement with the street, governance, capital deployment, balance sheet efficiency, etc. All of these items are core to the long thesis for accelerating earnings growth and a positive re-rating of the stock. |
Buyem on red,
KM
