Buy this little-known storage stock with more than 40% upside, Jefferies says

Jefferies said Janus International is an undervalued small cap name that can outpace peers in the storage sector. The firm initiated coverage of the self storage stock with a buy rating and a $20 per share price target. Jefferies’ forecast implies nearly 42% upside from Friday’s $14.09 close. Janus International stock has risen nearly 8% in 2024. The company is a manufacturer of doors for both commercial and industrial self-storage units. The company also restores older storage facilities, and offers its own keyless entry system for its unit doors entitled Nokē. Analyst Philip Ng said that while Janus remains outside of investor focus, he thinks the stock is undervalued compared with peer small cap storage firms. JBI YTD mountain Janus International shares year to date “Given JBI’s SPAC origins, it’s still under the radar, but now that its float is much improved with PE out of the stock, it should re-rate higher,” Ng said. The analyst added that previous headwinds concerning slower construction tied to pandemic-era delays are now abating, which will help stoke new demand as interest rates come down. Ng also lauded the company’s strong pricing power. “As the only national player with a full-service solution, JBI has strong pricing power,” he added. “With self-storage occupancy rates (90%) above mid-cycle (~85%), this is driving demand for new capacity.” — CNBC’s Michael Bloom contributed reporting.