Sun Communities initiated with a Buy at Jefferies

Jefferies initiated coverage of Sun Communities with a Buy rating and $160 price target The shares have underperformed peers since the 2021 peak on a lack of earnings growth largely due to rate headwinds and operational hiccups, the analyst tells investors in a research note. However, with short-term rates coming down and $357M in assets sold year-to-date to de-lever, Sun’s headwinds will soften in 2025, the analyst tells investors in a research note. Jefferies thinks a return to mid-single-digit funds from operations growth in 2025 will help the stock re-rate.