UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on Equity Lifestyle Properties Following 1Q Results

In a report published Monday, BMO Capital Markets analyst Paul E. Adornato reiterated a Market Perform rating on Equity Lifestyle Properties

, and raised the price target from $74.00 to $85.00. In the report, Adornato noted, “ELS beat our 1Q estimate by $0.05, owing to better-than-expected used home sales revenues and ancillary services. A greater focus on home sales resulted in a 15% y/y increase in used home sales, while purchases of new homes remain sluggish. In recent quarters, ELS has been (somewhat reluctantly it seems) increasing its efforts to rent homes left vacant by tightened financing. However, management is shifting resources back to its ownership campaign, as it prefers the traditional site rental model rather owning homes for rent. Underscoring its focus on home ownership, ELS announced a partnership with Cavco (CVCO), a leading builder of manufactured homes, to provide financing for new homes; which buyers may still find difficult to obtain through traditional lending platforms. With limited deal activity in ELS's targeted age-restricted communities, we welcome all efforts to boost long-term cash flows by adding homeowners.” Equity Lifestyle Properties closed on Friday at $84.68.