Public Storage Inc. (NYSE:PSA) has room to lift its supply for smaller self-storage competitor Life Storage (NYSE:LSI) after LSI rejected the bid on Thursday, in response to Citi.

“At present ranges, we estimate PSA’s supply equates to a cap price of 5.4%; in our opinion, there may be room for PSA to lift its supply, and we are going to search for particulars round whether or not LSI seemed to enter negotiations with PSA and if the corporate stays open to a better supply,” Citi analyst Smedes Rose, who has a impartial ranking and $126 value goal on LSI, wrote in a be aware late Thursday.

Life Storage’s (LSI) board on Thursday rejected the unsolicited bid from rival Public Storage (PSA), saying the supply “considerably undervalues” the corporate in addition to its prospects for future development.

Life Storage “wants to offer shareholders extra element round why a standalone method makes extra sense than accepting a 20 % (on the time of supply) premium to present ranges, or extra importantly, why not negotiate a extra favorable deal for LSI shareholders,” Citi’s Rose, who lowered his ranking on LSI to impartial from purchase earlier this month after the Public Storage (PSA) bid was disclosed.

Th Citi feedback come after a Truist analyst mentioned earlier this month that there is a “sturdy chance” that Public Storage (PSA) might “barely” improve its supply for Life Storage (LSI).

Life Storage (LSI) plans to offer extra element relating to its choice to reject the PSA bid and its monetary outlook throughout its This autumn earnings name on Friday. Public Storage (PSA) will launch its This autumn outcomes on Tuesday and maintain a convention name on Wednesday.

Additionally see SA contributor Dane Bowler’s piece from earlier this month entitled “How To Play The Public Storage And Life Storage Merger Speak”