Upgrade in Equity Lifestyle: Jefferies Increases Price Target to $80

Equity Lifestyle Upgraded to Buy with $80 Price Target

Jefferies has upgraded Equity Lifestyle (ELS) to a “Buy” rating, citing positive trends in the manufactured housing sector. The analyst firm has increased its price target for the company to $80, up from $72.

Constructive Outlook on Manufactured Housing

Jefferies is constructive on the manufactured housing sector into 2025, driven by demographic trends and affordability challenges in the traditional housing market. The aging population and increasing demand for affordable housing are expected to drive growth in this sector.

Reasoning Behind the Upgrade

The analyst expects Equity Lifestyle’s funds from operations (FFO) growth to accelerate in 2025, coupled with a valuation that is reasonable compared to historical averages. This suggests that the company is undervalued relative to its peers and has the potential for long-term growth.

Key Takeaways

• Jefferies upgrades Equity Lifestyle to “Buy” from Hold
• $80 price target, up from $72
• Positive outlook on manufactured housing sector into 2025
• Expected acceleration in FFO growth and reasonable valuation