Resilient Fundamentals to Drive FFO Growth for Equity LifeStyle Properties (ELS)

Equity LifeStyle Properties (NYSE:ELS) is one of the most favored real estate investment trusts according to Hedge Funds.

On December 8, RBC Capital upgraded its Sector Perform rating for Equity LifeStyle Properties (NYSE:ELS) to Outperform. The firm forecasted a 10% upside based on an estimated price target of $70.

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RBC Capital expects Equity LifeStyle Properties (NYSE:ELS) to be among the best growth performers in funds from operations (FFO) in 2026 within the residential REITs category. The firm sees fundamental resilience in this REIT against weak employment and AI-related risks.

RBC Capital also noted recent concerns related to the REIT’s RV business, which generated a lot of pessimism. However, going into 2026, these issues are expected to die down.

UBS Analyst Michael Goldsmith also reaffirmed his Buy rating for Equity LifeStyle Properties (NYSE:ELS) on January 8. He lowered his target price estimates from $77 to $67, which now results in over 5% upside. Goldsmith expects a more favorable macroeconomic and political landscape for REITs in the second half of 2026.

Equity LifeStyle Properties (NYSE:ELS) owns and manages manufactured homes (MH) communities, RV resorts and membership campgrounds. The company focuses primarily on income through rentals, long-term leasing and home sales. Beyond that, it also develops lifestyle communities covering high-demand vacation and retirement locations with luxurious amenities such as pools, clubs and golf courses.

While we acknowledge the risk and potential of ELS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ELS and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.