Hudson Pacific Properties (HPP – Research Report), the Real Estate sector company, was revisited by a Wall Street analyst yesterday. Analyst Peter Abramowitz from Jefferies remains neutral on the stock and has a $12.00 price target.
Peter Abramowitz has given his Buy rating due to a combination of factors surrounding the recent transaction involving Hudson Pacific Properties. The sale of One Westside, despite being slightly dilutive to the 2024 estimates by $0.05, is viewed positively as it was executed at a sub-7% capitalization rate on a cash basis. This rate is advantageous compared to the stock’s current implied cap rate of 9.5%. The strategic sale and the use of proceeds to pay off debt and reduce credit line usage are seen as beneficial moves for the company’s financial positioning.
Moreover, the analyst maintains a positive outlook on Hudson Pacific Properties’ future earnings, especially for the fiscal year 2025. The estimates for this period are still 3.4% higher than the consensus, mainly due to expected higher net operating income from the studio business as it rebounds from the Hollywood strikes in 2023. The anticipation of a recovery in this segment of the business, combined with the value implication of the company’s office assets as evidenced by the recent sale, underpins the Buy rating. Overall, the transaction is perceived to reflect well on the intrinsic value of Hudson Pacific Properties’ assets and its financial strategy moving forward.
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Hudson Pacific Properties (HPP) Company Description:
Hudson Pacific Properties, Inc. is a real estate company. It owns, operates, develops and acquires office, media, and entertainment properties. The company operates through two segments: Office Properties and Studio Properties. The Office Properties segment manages office properties located in California and Pacific Northwest. The Studio Properties segment primarily used for the physical production of media content, such as television programs, feature films, commercials, music videos and photographs. Hudson Pacific Properties was founded by Victor J. Coleman on November 9, 2009 and is headquartered in Los Angeles, CA.
Read More on HPP:
- Hudson Pacific price target raised to $5.25 from $4.50 at BofA
- Hudson Pacific price target raised to $13 from $12 at BMO Capital
- Hudson Pacific upgraded to Buy from Hold at Jefferies
- Hudson Pacific price target raised to $13 from $11 at BTIG
- Hudson Pacific price target raised to $8 from $4 at Morgan Stanley
