Analyst Ronald Kamdem of Morgan Stanley maintained a Sell rating on Hudson Pacific Properties (HPP – Research Report), retaining the price target of $2.25.
Ronald Kamdem has given his Sell rating due to a combination of factors impacting Hudson Pacific Properties. The company recently completed a commercial mortgage-backed securities (CMBS) financing of $475 million for a portfolio of six office properties. Despite this financing, the interest rate on the loan was higher than anticipated, reflecting a volatile macroeconomic environment and a reduced investor risk appetite, particularly concerning West Coast office properties.
Additionally, while the company’s liquidity has improved to approximately $815 million, the wider spread levels for the CMBS deal indicate potential challenges ahead. The increased liquidity may help address upcoming maturities, but the market conditions and the unexpected rate on the CMBS offering suggest caution. These factors combined have led Ronald Kamdem to maintain a Sell rating on Hudson Pacific Properties’ stock.
HPP’s price has also changed moderately for the past six months – from $4.780 to $2.950, which is a -38.28% drop .