Extra Space Storage (EXR) is set to benefit from better-than-expected fundamentals in the current macro environment, BofA Securities said in a Tuesday note.

Despite general investor concerns on consumers and the sluggish housing market reducing velocity, demand for storage remains steady, BofA analysts said. The main positive factor for the company is less pressure from self-storage supply, the analysts said.

Even without an increase in storage demand due to housing mobility, the analysts said they expect the company's continued revenue growth into 2027, underpinned by stable occupancy and low-single-digit growth in move-in rates year over year, according to the note.

Positive factors for Extra Space Storage include operating trends holding steady, supply trends moving in the right direction, customer behavior remaining stable, the stock's attractive valuation relative to peers, and the potential for a Q2 beat and raise in guidance, the note said.

BofA Securities upgraded the company's stock rating to neutral from underperform and raised the price target to $156 from $147.

Price: 147.52, Change: +0.87, Percent Change: +0.59