On Monday, UMH Properties (NYSE:UMH), a company specializing in manufactured home communities, received a new coverage update from Wedbush. The company has been given a Neutral rating with a set price target of $17.00. This update follows an internal transition at the firm that previously covered UMH Properties.
UMH Properties operates 135 communities with 25,800 home lots across the United States. The business provides affordable housing options, which are particularly important in the current housing market. The company's offering often presents lower monthly payments for residents compared to multifamily rents in the same areas.
The firm acknowledged UMH's significant same-store growth, which has been impressive following the disruptions caused by the pandemic. This growth indicates a positive recovery and adaptation to the post-pandemic market conditions, highlighting the company's resilience and strategic management during challenging times.
The analyst pointed out that while the market is adjusting to UMH's capital raising strategy, which includes regular equity raises, there are concerns regarding its small capitalization and limited trading liquidity. These factors could potentially narrow the pool of interested investors due to perceived risks or a preference for more liquid investment opportunities.
In closing remarks, the analyst expressed a positive initial impression of UMH Properties. The company's straightforward and committed approach to conducting business was noted as a strong point, with a nod to the shared New Jersey roots of the company and the analyst.
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