Piper Sandler downgrades Hudson Pacific to Neutral, lowers price target to $6

As previously reported, Piper Sandler downgraded Hudson Pacific to Neutral from Overweight with a price target of $6, down from $7, following quarterly results as the earnings rebound is now delayed. The firm’s former Overweight-thesis on Hudson Pacific was based on the Hollywood stand-off resolving by mid-year, with earnings rebounding in the second half of 2024 into 2025. The Q2 conference call outlined earnings will fall further in Q3 as the timing of Hollywood restarting and office occupancy backfill is more fluid. Unfortunately, this year’s contract discussions on the heels of last year’s strike have iced production more than most anticipated, Piper adds.