UPDATE: BMO Capital Markets Upgrades Sun Communities to Outperform on Accretive Acquisitions, Fundamentals
BMO Capital Markets upgraded Sun Communities (NYSE: SUI) from Market Perform to Outperform and raises the price target from $45.00 to $52.00.
BMO Capital Markets noted, "SUI acquired 10 RV parks with 3,700 sites mostly in the Northern US – a geography that will help balance seasonality of the sunbelt – for an aggregate $116.8 mn. ... SUI has been consistent in its strategy: buy properties at attractive initial cash yields of around 7% or better, with a near-term plan to increase the yield by 100–200 bp. SUI has lately focused on RV parks, as these assets remain available at attractive initial yields and offer synergies with its existing portfolio of RV and manufactured home communities. Finally, SUI issued 2013 guidance of $3.45–$3.55, above the consensus $3.41; the company is expected to report 4Q earnings next week."
Sun Communities closed at $44.74 on Wednesday.
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