Barclays upgrades Equity LifeStyle Properties stock rating to Overweight

Published 29/07/2025, 09:12
Barclays upgrades Equity LifeStyle Properties stock rating to Overweight

Investing.com - Barclays (LON:BARC) has upgraded Equity LifeStyle Properties (NYSE:ELS) from Equalweight to Overweight while adjusting its price target to $67.00 from $70.00. The upgrade comes as the stock trades near its 52-week low of $58.31, with InvestingPro data showing technical indicators suggesting oversold conditions.

The upgrade comes as Barclays believes the market narrative around ELS has been overly focused on non-core business segments, which represent approximately 31% of projected FY25 revenues, including RV Transient, Campground Memberships, and Home Sales.

Following a reset of FY25 guidance, Barclays sees potential for these non-core businesses to improve in FY26 against easier comparisons, potentially triggering a positive re-rating as investor focus returns to the company’s core manufactured housing and RV business.

Barclays notes that ELS expects to achieve approximately 6% rate growth on upcoming renewals in Annual MH and RV segments, supporting the firm’s long-term outlook on core business demand.

The new price target includes a 5% premium to Barclays’ fair net asset value estimate of $62, reduced from a previous 10% premium, though the firm maintains that ELS deserves premium valuation given its "relatively clear pathway to 4%-5% NOI growth and 5%+ FFO/sh growth over the next 2-3 years."

In other recent news, Equity Lifestyle Properties Inc . reported strong financial results for the second quarter of 2025. The company exceeded Wall Street forecasts with an earnings per share (EPS) of $0.42, slightly above the anticipated $0.41. Revenue also surpassed expectations, reaching $376.9 million, which was an 18.44% surprise over the forecasted $318.22 million. These results highlight the company’s robust performance in the recent quarter. Despite the positive financial outcomes, the stock experienced a decline, which may reflect broader market trends or specific investor concerns. Analyst firms have not provided any upgrades or downgrades in response to these earnings results. Investors may find these developments noteworthy as they assess their positions. Equity Lifestyle’s recent performance could influence future market perceptions and investor decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.