Summary

  • BTIG upped its price target on HPP to US$11, the highest price target among brokers as per data available on EODHD/Others.
  • The resolution of the ongoing actors’ strike is expected to drive demand recovery for HPP’s studio business.
  • HPP has a mean recommendation rating of 2.8 on five, while the consensus mean price target on the stock is US$7.23.

BTIG upgraded its price target on REIT firm Hudson Pacific to US$11, the highest price target among all brokers as per EODHD/Others data. The new price target reflects an upside potential of 63.2% over the stock’s closing price on Tuesday.

As per EODHD/Others, HPP has a mean recommendation rating of 2.8 on a scale of one to five. Here, one indicates a ‘strong buy’ rating while five stands for a ‘strong sell' rating. The consensus mean price target is US$7.23, an upside potential of 7.27% over Tuesday’s closing price.

HPP Price Chart; Source: EODHD/Others

HPP closed at US$6.74 on Tuesday, September 26, 2023. Based on Tuesday’s closing price, HPP rose 14.62% over a 6-month period. However, on a YTD basis the stock price was lower by 30.73%.

HPP attained its 52-week high of US$12.225 on February 2, 2023. Since then, the stock price has corrected by 44.87%.

HPP shares rise 2.1% after BTIG upgrade

Following the upgrade by broker BTIG, HPP shares were up by 2.1% at US$6.75 premarket on September 26, 2023. The upgrade came as Hollywood writers reached a tentative deal to end one of two strikes on Sunday.

The resolution of the ongoing actors’ strike should help in driving demand recovery for HPP’s studio business. The blueprint for this resolution is provided in the writers’ strike agreement, which can help act as near-term tailwind.

HPP’s studio business formed roughly 12% of its net operating income in the pre-strike period. Additionally, ahead of BTIG’s internal valuations, recent asset sales provide a pathway for HPP to address maturing debt between now and 2027 end.

During early September, HPP suspended its Q3 common stock dividend due to the impact of Hollywood labor impasse.

As of June 30, 2023, Hudson Pacific’s total liquidity amounts to US$581.2 million, with unrestricted cash and cash equivalents of US$109.2 million.

Analysts increase ratings to ‘buy’ and ‘moderate buy’

Data available on EODHD/Others shows that analysts have raised their ratings on HPP over the previous one month period. As on August 26, 2023, one analyst has given HPP a ‘strong buy’ rating, two analysts have given it a ‘buy’ rating and 7 have given it a ‘hold’ rating.

Image Source: ©2023 Kalkine®; Data Source: Company Reports

Meanwhile, two analysts believe the stock is a ‘hold’ and none of the analysts have given HPP a ‘strong sell’ rating. Alternatively, none of the analysts had given HPP a ‘buy’ or ‘moderate buy' rating a month before.

BTIG increased its rating on HPP to ‘buy’, while Piper Sandler Companies increased its rating on HPP to ‘overweight’. Meanwhile, Scotiabank and Wells Fargo had given HPP ‘sector perform’ and ‘equal weight’ ratings, respectively.