Piper Sandler Downgrades Hudson Pacific Properties (HPP) to Neutral

Piper Sandler analyst Alexander Goldfarb downgraded Hudson Pacific Properties (NYSE: HPP) from Overweight to Neutral with a price target of $6.00 (from $7.00).

The analyst comments "HPP - studio and office backfill timing matters. The positive is the Teamsters ratified their contract last week, which brings an end to 18-months of uncertainty in Hollywood (see our June 26 Sunset Glenoaks note for more thoughts). Unfortunately, productions are down to 80 from 100 earlier this year in LA, as fewer media houses were willing to start new filming amidst the uncertainty. HPP noted LA has lost $1b in revenues, as other markets have gained production share, especially as tax incentives and labor challenges have worked against LA versus elsewhere. While HPP expects 4Q24 to improve, it's hard to say when Hollywood will return to normal. However, HPP doesn't need full return for the studios to impact earnings, as the high fixed costs, especially Quixote, mean incremental productions will have an outsized result."

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 $5.37 yesterday.

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