Hudson Pacific Properties gains as BTIG upgrades on writers' strike deal

Hudson Pacific Properties

26/09/2023 13:38

** Hudson Pacific Properties Inc's  HPP.N  shares up 2.1% at
$6.75 premarket as BTIG upgrades REIT to "buy" from "neutral",
saying writers' strike agreement provides near-term tailwind
    ** Hollywood writers reached a tentative deal to end one of
the two strikes on Sun
    ** BTIG sets PT at Street-high $11, per LSEG data, implying
~66% upside to stock's Mon close
    ** Agreement provides blueprint for resolution of ongoing
actors' strike, which should drive recovery in demand for HPP’s
studio business (~12% of NOI pre-strike), BTIG analyst Thomas
Catherwood says in note
    ** In addition, recent asset sales have come in ahead of
BTIG's internal valuations, providing pathway for HPP to address
maturing debt between now and end of 2027, Catherwood says
    ** Now, 3 of 12 analysts rate HPP "buy" or "strong buy", 7
have "hold" and 2 recommend "sell"; median PT is $6.50
    ** Earlier this month, HPP suspended its Q3 common stock
dividend, pointing to impact of Hollywood labor impasse
    ** YTD, stock off 32% through Mon close

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))