Howard Hughes Holdings: Strong Cash Flow and Asset Performance Support Buy Rating Despite Mixed Signals

BMO Capital analyst John Kim maintained a Buy rating on Howard Hughes Holdings (HHH – Research Report) today and set a price target of $85.00.

John Kim’s rating is based on a combination of factors that highlight the strengths of Howard Hughes Holdings. The company experienced a significant increase in its adjusted operating cash flow in 2024, driven by robust condo sales, although it slightly missed its guidance target. Despite expectations of lower condo profits in 2025, the company demonstrated strong performance in its operating asset cash SSNOI, particularly in the retail and office sectors.
Additionally, Howard Hughes Holdings successfully sold residential acres at favorable prices, contributing to increased builder participation revenues. The sale of Victoria Place also resulted in substantial condo gross profits with impressive margins. However, the lack of updates on a potential merger with Pershing Square and a notable decline in MPC EBT in the fourth quarter of 2024 were considered downsides. Overall, these positive developments support John Kim’s Buy rating for the stock.

Kim covers the Real Estate sector, focusing on stocks such as Equity Residential, Howard Hughes Holdings, and Prologis. According to TipRanks, Kim has an average return of 0.7% and a 49.30% success rate on recommended stocks.

In another report released on February 19, Piper Sandler also maintained a Buy rating on the stock with a $105.00 price target.