CubeSmart (CUBE) Stock Forecast & Price Target

CubeSmart has demonstrated a robust financial performance, illustrated by a 28% increase in trough-to-peak effective rent for 2025, alongside a 190 basis points rise in occupancy compared to the previous year. The company's recent move-in rates have shown a positive shift, increasing by 2.5% in the third quarter of 2025, marking the first growth since the first quarter of 2022. Additionally, heightened revenue growth assumptions and improved net operating income (NOI) outlook further support CubeSmart's favorable financial trajectory in a competitive market environment.

CubeSmart's stock outlook is negatively impacted by a year-over-year decline in occupancy rates, which saw a 100 basis point decrease in October, along with expectations for a 1.0% decline in normalized funds from operations per share (FFOps) for 2025. The company's revenue growth projections are uncertain, with potential pressures from increased supply in key markets and slower demand recovery, particularly in the Sunbelt and New York City areas, where CubeSmart has significant exposure. Furthermore, the heightened competition in third-party management and regulatory scrutiny facing the self-storage industry adds additional risks that may hinder CubeSmart's financial performance.