Analysts at Berenberg Bank started coverage on Extra Space Storage Inc. (NYSE:EXR) with a buy rating and $198 price target, mentioning that the company is the second-largest domestic owner and operator of self-storage facilities and has multiple growth channels to continue expanding its investment footprint.

According to the brokerage, the company has a flexible investment strategy with wholly-owned self-storage properties, joint ventures, third-party managed properties, and equity investments, noting that the company was the first self-storage operator to start a third-party management platform, and now utilizes its management platform with its JV investments.

The analysts anticipate management platform and the competitive advantage afforded by its technology will continue to generate attractive returns for the company.