Hudson Pacific Properties: Strategic Moves and Leasing Momentum Drive Buy Rating

BMO Capital analyst John Kim has maintained their bullish stance on HPP stock, giving a Buy rating on May 6.

John Kim has given his Buy rating due to a combination of factors that indicate potential for Hudson Pacific Properties (HPP) to improve its financial standing. The company has shown positive momentum in leasing activities, with a significant increase in office leasing to 630,000 square feet, which is a notable improvement compared to the long-term average. Additionally, HPP is actively working on reducing its general and administrative expenses, projecting a 12% decrease in FY25, which reflects a more efficient cost structure.
Despite some challenges, such as a decline in occupancy rates and leasing spreads, John Kim sees potential in HPP’s strategic moves to enhance liquidity through asset dispositions, including the sale of a property in San Francisco. The company’s ability to report core funds from operations per share slightly above consensus estimates also supports the Buy rating. These factors collectively suggest that HPP is taking steps to navigate current market conditions and position itself for future growth.

According to TipRanks, Kim is a 2-star analyst with an average return of 0.3% and a 48.43% success rate. Kim covers the Real Estate sector, focusing on stocks such as Vornado Realty, Eastgroup Properties, and Hudson Pacific Properties.

In another report released on May 6, BTIG also maintained a Buy rating on the stock with a $8.00 price target.