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Sun Communities initiated with a Buy at Jefferies

Jefferies initiated coverage of Sun Communities (SUI) with a Buy rating and $150 price target The firm is constructive on manufactured housing, citing the tailwinds of an aging population and housing affordability challenges. Manufactured housing can weather macro challenges better than other sectors due to affordability and the possibility of a trade-down effect, the analyst tells investors in a research note. Jefferies is constructive on Sun’s turnaround, led by cost restructuring efforts, leadership changes, and the expected sale of its marina business to de-lever.

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