- Investment bank Jefferies has reiterated a “Buy” rating on self-storage giant Big Yellow Group.
- Activist investor Ancora, holding over 4% of shares, is urging Big Yellow Group to explore a strategic sale to maximize shareholder returns.
- Despite recent stock declines, Big Yellow Group’s strong fundamentals, including freehold properties and robust cash flows, suggest a significant discount to its net asset value (NAV).
Investment bank Jefferies maintains a Buy rating on Big Yellow Group (OTC: BYLOF) and takes a hold action in its latest stock market update. The self-storage stock trades at $10.99 when the update is posted. Big Yellow Group operates in the self-storage industry, providing space for customers to keep belongings. Its shares also trade in London under the symbol BYG.
The investment rating comes as Ancora pushes Big Yellow Group to consider a sale, as highlighted by Reuters. Ancora holds more than 4% of the company and argues that a strategic review could give shareholders the best return for the risk involved. The report names no potential buyer or sale price and does not include a response from Big Yellow Group.
Ancora points to Big Yellow Group’s freehold properties, steady cash flows and healthy balance sheet. It says the shares trade at a 40% discount to net asset value (NAV), an estimate of what the company’s assets are worth after subtracting its liabilities. The shares have fallen 28% over the past year, as highlighted by Proactive Investors.
Big Yellow Group’s London-listed shares rise more than 5% to 842p on Wednesday morning, as highlighted by Proactive Investors. Big Yellow Group shares are up $0.24, or 2.23%, at $10.99. Its 52-week range is $10.50 to $15.84, its market value is about $2.15 billion, and trading volume is 520 shares.
