UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Equity Lifestyle Properties

In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on Equity Lifestyle Properties

, and raised its price target from $72.00 to $74.00. BMO Capital Markets noted, “Overall demand for manufactured home communities and RV resorts remains steady, but with annual right-to-use fees and home sales revenues down 3% and 25%, respectively, management outlined several measures it will take to improve operating performance, including beefing up its marketing campaigns and promotions and putting more boots on the ground to sell homes and memberships. We welcome the greater focus but note that spotty financing and tepid single family sentiment will continue to weigh on manufactured home sales. On the brighter side, we note used home sales increased by 60% in 2012, and while occupancy is not a direct beneficiary as these homes are typically turned over with no interruption in rent, a shift in the propensity to buy (new or used) could be a reason for optimism. For now, we think ELS will continue to expand its rental programs to add to occupancy. While owning a home inventory is highly capital intensive, we don't see many alternatives to the rental home model.” Equity Lifestyle Properties closed on Thursday at $71.60.