In a report released today, John Kim from BMO Capital maintained a Buy rating on Sun Communities (SUI – Research Report), with a price target of $139.00.
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John Kim has given his Buy rating due to a combination of factors that highlight Sun Communities’ strategic financial maneuvers and potential for growth. The company has successfully increased its full-year 2025 Core Funds From Operations per share guidance, surpassing market expectations. This improvement is attributed to the strategic allocation of proceeds from the sale of its marina division, which has been used to reduce debt, fund acquisitions, and enhance shareholder returns.
Despite some challenges, such as a reduction in 2025 North America Same Store Net Operating Income guidance and a decline in transient RV revenue, Sun Communities has shown resilience. The company’s manufactured housing segment has performed well, with an increase in Same Store Net Operating Income guidance. Additionally, the decrease in net debt-to-recurring EBITDA indicates a stronger financial position, further supporting the positive outlook for the company’s stock.
In another report released on April 21, Citizens JMP also maintained a Buy rating on the stock with a $140.00 price target.