In a report released yesterday, Michael Diana from Maxim Group reiterated a Buy rating on Umh (UMH – Research Report), with a price target of $22.00.
Michael Diana’s rating is based on UMH’s strong financial performance and strategic growth initiatives. The company reported a normalized FFO of $0.24 for 4Q24, which aligns with consensus expectations and adequately covers its quarterly dividend, offering a yield of 4.6%. This financial stability is further supported by a notable same-property NOI growth of 10% for 2024, significantly outperforming peers and highlighting UMH’s effective value-add acquisition strategy.
UMH’s strategic approach includes acquiring communities with low occupancy at reasonable prices, improving them, and adding rental units, which enhances both occupancy and pricing. The company is well-positioned for future growth with 3,300 vacant sites available for long-term rental units or leasing to manufactured home owners. Additionally, UMH’s shares trade at a favorable multiple compared to larger peers, and its higher dividend yield supports the Buy rating. The expected stock price appreciation and dividend yield suggest a potential total return of approximately 23%, reinforcing the Buy recommendation.
Diana covers the Financial sector, focusing on stocks such as Cullen/Frost Bankers, First Savings Financial Group, and Horizon Technology. According to TipRanks, Diana has an average return of 3.9% and a 53.40% success rate on recommended stocks.
In another report released on February 27, Alliance Global Partners also reiterated a Buy rating on the stock with a $21.50 price target.