Nucor earnings beat by $0.08, revenue fell short of estimates
On Monday, Citizens JMP analysts reiterated a Market Outperform rating for Sun Communities stock (NYSE:SUI), maintaining a price target of $140.00. According to InvestingPro data, analyst targets range from $126 to $160, with the stock currently trading at a P/E ratio of 151.5x. The decision follows a meeting led by outgoing founder, chairman, and CEO Gary Shiffman, who is overseeing the company’s ongoing search for a new CEO.
During the meeting, Shiffman expressed confidence in the current pool of candidates, although no final decisions have been made. The company is also evaluating a significant number of acquisitions, intending to allocate proceeds from Safe Harbor. However, the potential acquisitions are priced in the 4-5% cap rate range, which has been a point of concern.
Sun Communities has been targeting several unique manufacturing housing assets for years. Despite this, the firm remains cautious about deploying acquisition capital at full price points due to its multi-year efforts to deleverage and simplify its operations.
The analysts noted the company’s cautious approach carries no downside, but they acknowledged the significant risk involved in re-entering acquisitions, which could lead to unforeseen challenges.
In other recent news, Sun Communities has reported its financial results for the first quarter of 2025. The company posted an earnings per share (EPS) of -$0.34, missing the expected $0.0491, while revenue reached $470.2 million, falling short of the projected $559.26 million. Despite these figures, Sun Communities’ Core Funds From Operations (FFO) per share was $1.26, surpassing both Citizens JMP’s expectation of $1.07 and the consensus estimate of $1.15. Barclays (LON:BARC) has upgraded Sun Communities to an Overweight rating, indicating a positive outlook on the company’s operational changes and potential for future earnings growth. This upgrade follows Sun Communities’ strategic decision to sell its marina segment, a move that netted $5.25 billion and is expected to enhance the company’s focus on manufactured housing and recreational vehicle operations. Additionally, Sun Communities has adopted revised bylaws, aligning with common practices among publicly-traded Maryland corporations, and held its annual meeting where nine directors were elected. The company also announced a new CEO search, expected to conclude by the end of the year, which could further influence investor sentiment.
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