RobertW. Baird & Co. Inc. analyst RJ Milligan initiated coverage of with a rating of "outperform," and a price targetof $23.
The analyst wrote in a research report: "We believe NSAoffers investors a way to play storage at a much more attractive multiple,higher projected FFO growth rate and a well covered 4.1% dividend yield. Whileshares trade at a 10% premium to our $18.19 NAV, we view NAV as a less relevantvaluation metric for NSA given its structure (a takeout would be difficult, ifnot impossible). Instead we focus on multiples – NSA's shares currently tradeat a 6-turn 2017 AFFO multiple discount to the peer average (23x). Our $23price target implies shares should trade at 20x our 2017 AFFO estimate (vs. theclosest peer SSS trading at 21x)."