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Actionable news in SSS: SOVRAN SELF STORAGE Inc,

Sovran Self Storage Downgraded By Jefferies To Hold, Expects Growth To Slow As Co. Rebrands To LifeStorage

Jefferies downgraded Sovran Self Storage Inc SSS to Hold from Buy and lowered its price target to $100 from $135.

According to the analysts, the downgrade was driven by expectations of slowing same-store revenue and SSNOI growth as SS revenue growth in 2Q16 was 5.7 percent, down from 6.7 percent in 1Q16 and management lowered FY2016 SS revenue growth guidance to 5.5-6.5 percent, from 6-7 percent.

Moreover, despite the analysts view the acquisition of LifeStorage and the pending rebranding to LifeStorage from Uncle Bob's Self Storage as a long-term positive, they believe there is an increased likelihood of negative surprises over the next few quarters as the implementation occurs, such as occupancy weakness, greater than expected marketing spend, and increased promotions.

DateFirmActionFromTo
Aug 2016JefferiesDowngradesBuyHold
Aug 2016KeyBancDowngradesSector WeightUnderweight
Aug 2016UBSMaintainsNeutral

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