Why FBR Likes Equity LifeStyle Properties (NYSE:ELS)

With snowbirds set to travel south for the winter, Equity LifeStyle Properties (NYSE:ELS) should get a nice boost from the additional business.

FBR said, "As 2010 draws to a close, we are reminded that one of Equity Lifestyle Properties' core demographics is preparing to migrate to warmer climates (the November–April "season"). Despite notable YTD underperformance by the stock, several reasons remain to like the company, including: (1) likely above-average SSNOI growth, (2) CF resilience, (3) a low beta, (4) exposure to slowly improving consumer sentiment, (4) low average product price points, (5) notable expense control and margin stability, (6) continued supportive demographic trends, and (7) a broad internal growth opportunity set. That said, we maintain our Market Perform rating, with an eye to growing more constructive should valuation contract further. Below, we review recent stock performance, update our current valuation assumptions, summarize seasonal expectations, and adjust our estimates on the announcement of a noncash charge."

FBR Capital maintains a "Market Perform" on Equity LifeStyle Properties, which closed Thursday at $54.14, up $0.30, or 0.56 percent. FBR has a price target of 60 on them.