Howard Hughes downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Howard Hughes (HHH) to Neutral from Overweight with a price target of $76, down from $82. Pershing Square and Bill Ackman’s intention is to use the cash infusion into the company to make investments outside real estate and turn Howard Hughes into a diversified holding company, the analyst tells investors in a research note. As a result, the firm thinks the thesis of strong real estate performance narrowing the net asset value gap or the company taking actions to narrow the gap is as prevalent as it was prior. Instead, JPMorgan thinks the direction of the stock will increasingly be dependent on the yet-to-be identified investments in other areas.