Sun Communities downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Peter Abramowitz downgraded Sun Communities (SUI) to Hold from Buy with a price target of $138, down from $145. The firm says the outlook for manufactured housing “remains constructive” given the aging population. In addition, manufactured housing is an attractive option to combat housing affordability issues, as a new manufactured home is 75% less expensive than a site built home, the analyst tells investors in a research note. Deutsche switched its preference in the sector to Equity Lifestyle over Sun Communities. The challenging seasonal and transient outlook poses a bigger challenge for Sun than Equity Lifestyle, contends Deutsche Bank.