Stock Price & Analysis

Based on the technical indicators and recent market data, SUI stock appears to be in a neutral to slightly bearish position, with limited upside potential at the current price of $125.55.

The stock is showing mixed signals with an RSI of 50.52, indicating neither overbought nor oversold conditions. Recent analyst ratings suggest caution, with several downgrades in late 2024. The average price target from analysts is around $133, representing modest upside potential of about 6% from current levels.

The company faces challenges in its RV segment with expected 5% decline in net operating income for 2024, though this is partially offset by growth in marina (5%) and manufactured housing (6%) segments. The relatively low dividend yield of 3% compared to the REIT sector average of 3.8% makes it less attractive for income-seeking investors.

Given these factors and limited growth catalysts in the near term, investors might find better opportunities elsewhere in the REIT sector.

Based on the provided data and market analysis, SUI stock is projected to reach $134.78 by the end of 2025, supported by its strong manufactured housing business segment which is expected to grow net operating income by up to 6%. The stock currently trades at $125.55 with technical indicators showing potential upside movement as it crosses above the 200-day moving average, while the company's solid dividend policy and strategic expansion into UK markets provide additional growth catalysts. However, investors should note that the RV park segment faces some headwinds with projected 5% decline in net operating income for 2024, though this is expected to stabilize in 2025.

The S1 support level for SUI Stock is $123.78 ,The R1 resistant level for SUI Stock is $127.52.

As of the end of day on 2025-02-14, the price of SUI Stock was $124.99.

The target price for SUI Stock according to analyst rating is 130.60, with the highest price target at 142.00 and the lowest at 114.00. Analysts have a Moderate Buy rating on SUI Stock overall.

The market cap of SUI is $15.9B.

Based on the provided data and recent market analysis, here's a comprehensive evaluation of SUI's valuation:

Valuation Analysis: SUI currently trades at $125.55 with concerning valuation metrics in Q3 2024, including a P/E of 74.18x and EV/EBITDA of 21.91x. These multiples are significantly higher than historical averages, suggesting potential overvaluation.

Financial Performance: The company shows mixed financial results:

• Q3 2024 revenue reached $939.9M with improving net income of $288.7M
• Gross margin expanded to 30.36%
• Net margin significantly improved to 32.47%
• However, debt levels remain high with a debt-to-equity ratio of 93.63%

Analyst Sentiment: Recent analyst actions indicate growing concerns:

• Multiple downgrades since November 2024
• Price targets have been lowered consistently
• UBS downgraded from Strong Buy to Hold with $134 target
• B of A Securities downgraded to Sell with $114 target

Growth Limitations: The company faces structural growth constraints:

• Limited expansion opportunities in manufactured housing
• RV segment showing weakness with expected 5% NOI decline
• Marina business growth capped by location constraints

Conclusion: SUI appears overvalued at current levels due to its elevated valuation multiples, limited growth prospects, and recent analyst downgrades. The stock's current price of $125.55 represents a premium that may not be justified given the company's growth constraints and operational challenges.

Sun Communities, Inc. is a fully integrated real estate investment trust (REIT). The Company owns manufactures housing (MH) and recreational vehicle (RV) communities and marinas in the United States, the United Kingdom, and Canada. The Company operates through three segments: MH communities, RV communities, and Marinas. The MH communities segment offers affordable housing to individuals and families, while also providing certain amenities. The RV communities offers affordable vacation opportunities to individuals and families with various amenities. The Marinas offers wet slip and dry storage space leases, end-to-end services, fuel sales and other amenities. The Company owns and operates, directly or indirectly, or had an interest in, a portfolio of 667 developed properties located in the United States, the United Kingdom, and Canada, including 353 MH communities, 179 RV communities and 135 marinas. The Company’s properties contained an aggregate of 227,340 developed sites.

Based on the available data and market analysis, SUI stock is projected to reach $185-195 by 2030, driven by its strong manufactured housing business segment which is expected to maintain steady 6% annual NOI growth and expansion into international markets. The company's strategic focus on affordable housing and lifestyle-based recreation properties, combined with demographic trends favoring retirement communities, supports this long-term price target. However, the growth trajectory may be moderated by limited expansion opportunities in RV parks and marinas, with the company's diversified portfolio expected to generate moderate but stable returns over the next 5-7 years.

SUI has a total of 6780 employees.