Market's view on Safestore
Published on April 2024
- There are concerns about Safestore’s ability to meet its short-term liabilities due to a quick ratio of 0.5, raising questions about a potential default.
- The consensus among analysts is that the company is expected to outperform with a target price increase of over 25%.
- The enterprise value suggests that the stock might be undervalued.
- There are predictions that the final dividend payment could positively influence the company’s stock price.
- A stock watcher noted a significant increase in Safestore’s net tangible assets over a short period but remains skeptical about the sustainability of the share price.
- Despite slowed growth, Safestore is planning several new openings and continues to offer a healthy dividend increase.
- Interest rate hikes are seen as potentially boosting demand for storage space due to retailers needing storage for unsold inventory.
- Positive sector sentiment is observed, with other REITs also performing well, possibly due to optimistic economic outlooks.
- Safestore’s stock price showed unexpected rises and falls influenced by external publications and dividend declarations.
- The self-storage market is viewed as resilient and growing, with Safestore benefiting from both its UK operations and its profitable expansion in Europe.
- Safestore’s revenue and lettable area have shown solid growth with new development sites acquired in Madrid and the Netherlands.