UPDATE: Credit Suisse Starts Hudson Pacific Properties (HPP) at Underperform

Credit Suisse analyst Tayo Okusanya initiates coverage on Hudson Pacific Properties (NYSE: HPP) with a Underperform rating and a price target of $16.00.

The analyst comments "We initiate coverage of HPP with an Underperform rating and a $16 TP. Given 55% of rents come from technology and media/entertainment tenants, we are concerned that the ongoing slowdown in those sectors could have an adverse impact on earnings growth, especially with the elevated lease expiration schedule over the next few years. Additionally, headwinds facing streaming platforms in their bid to achieve profitability amid a slowdown in subscriber growth may lead to consolidation in the sector, reducing demand for studios. The HPP story is further complicated by a need to de-lever in a rising rate environment. Our $16 TP is derived via our dividend discount model (DDM) and reflects a 7.9x multiple on our 2022 FFO/share estimate."

For an analyst ratings summary and ratings history on Hudson Pacific Properties click here. For more ratings news on Hudson Pacific Properties click here.

Shares of Hudson Pacific Properties closed at $15.83 yesterday.

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