John Kim, an analyst from BMO Capital, maintained the Buy rating on Sun Communities. The associated price target remains the same with $140.00.
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John Kim’s rating is based on Sun Communities’ strong performance in the third quarter of 2025, which stood out in the residential REIT sector. The company reported a significant beat in Core FFOps and raised its guidance for 2025 above consensus expectations. Key components of this guidance, including MH/RV SSNOI and UK NOI, were increased, indicating robust operational performance.
Despite a decline in Transient RV income, this segment was a major contributor to the company’s quarterly beat, showcasing resilience in challenging areas. Additionally, Sun Communities provided solid rental rate guidance for 2026, with increases in MH, Annual RV, and UK rates. These positive developments, alongside strategic acquisitions totaling $457 million, underpin John Kim’s Buy rating, despite some concerns such as increased net debt-to-recurring EBITDA and higher G&A guidance.
In another report released on October 24, TR | OpenAI – 4o also upgraded the stock to a Buy with a $136.00 price target.