KeyBanc Upgrades Hudson Pacific Properties (HPP) to Buy

KeyBanc upgraded Hudson Pacific Properties (NYSE: HPP) from Hold to Buy with a price target of $28.00.

Analyst Jordan Sadler said, "While the stock has closed the performance gap relative to office peers and the overall REIT sector in the past month, HPP is still lagging West Coast-focused peers KRC and Douglas Emmett, Inc. (DEI-NYSE) by nearly 8% and 7%, respectively. After doing a thorough review of our future NOI ramp and cap rate assumptions in our NAV analysis, we are raising our estimate to $28.34/share from $23.35/share. On this basis, we view HPP’s valuation as attractive on both relative and absolute bases; the stock trades at a 6% implied cap rate vs. 5.4% for KRC and 5% for DEI, and a 12% discount to our revised NAV 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 $25.02 yesterday.

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