Analyst Caution Weighs on Public Storage’s Outlook

Public Storage US74460W5940

Market sentiment toward Public Storage has cooled following a series of cautious appraisals from prominent research firms. Mizuho Securities and Morgan Stanley have both issued tempered assessments, citing macroeconomic headwinds that could limit the self-storage leader's near-term performance.

The shift in analyst perspective crystallized on December 5, 2025. Mizuho Securities made a significant downward revision to its price target for Public Storage, lowering it to $285 from $310. While maintaining a "Neutral" rating, this adjustment reflects a more guarded view on the stock's immediate upside potential.

Mizuho analyst Ravi Vaidya pointed to broader economic conditions as the primary concern. A slowing employment growth trend, coupled with an increased supply of self-storage space, is pressuring demand. The outlook for 2026 remains subdued, influenced by elevated mortgage rates and affordability issues that are expected to constrain consumer mobility—a key driver for storage unit rentals.

Echoing this cautious stance, Morgan Stanley resumed coverage of the stock with an "Equal Weight" rating and a $290 price target. This positioning underscores a conservative view on the company's short-term growth trajectory.

Institutional Investors Adjust Holdings

Recent regulatory filings reveal a trend of position trimming among some major institutional holders. During the second quarter of 2025, asset manager Amundi reduced its stake by 9.8%, selling 69,658 shares. Similarly, Guggenheim Capital LLC decreased its holding by 18.3%, divesting 7,177 shares.

These moves by larger players suggest a defensive posture within the current market environment, despite isolated instances of new investment. For example, Stenger Family Office LLC established a new position valued at approximately $1.5 million.

Dividend Yield Offers a Counterbalance

Despite the pressure on its share price—which closed at $272.06 on December 5—the company's dividend policy remains a stable feature. Public Storage continues to pay a quarterly distribution of $3.00 per share. This translates to an annualized dividend of $12.00 and a current yield of roughly 4.4%, preserving the stock's appeal for income-focused investors even as price appreciation forecasts are moderated.

The upcoming ex-dividend date is set for December 15, 2025. Shareholders of record on that date will receive the payment on December 30, 2025. Market attention is now turning toward the company's ability to meet its full-year 2025 guidance, which calls for adjusted funds from operations (AFFO) per share in the range of $16.70 to $17.00.