Hudson Pacific Properties (HPP): Fresh Analyst Support Sparks New Interest—Is the Stock Undervalued?

Recent analyst updates have put Hudson Pacific Properties (HPP) back in the spotlight, as Wells Fargo maintained its Buy rating and several others issued supportive recommendations. This growing consensus is sparking fresh interest among investors.

See our latest analysis for Hudson Pacific Properties.

Hudson Pacific Properties saw renewed interest this week as upbeat analyst commentary followed solid quarterly results and a modest 3.2% 7-day share price gain. Despite these encouraging signals, the stock’s 1-year total shareholder return is still down nearly 48%, reflecting both lingering uncertainty and the long path to recovery. Momentum may be stirring from recent lows; however, investors remain cautious as the valuation resets.

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The key question now, as analyst optimism rises, is whether Hudson Pacific Properties is truly undervalued at these levels or if recent gains have already accounted for the company’s future prospects. Is there a compelling buying opportunity left, or is the market already pricing in any turnaround ahead?

Most Popular Narrative: 19.9% Undervalued

With Hudson Pacific Properties closing at $2.59 and the most popular narrative estimating fair value near $3.23, the current price sits well below analysts’ consensus. This gap underpins the argument for hidden upside, even as caution persists after a challenging year. The narrative suggests that recent business shifts and sector tailwinds could be transformative.

Accelerating office leasing momentum, particularly driven by AI and tech sector expansion in West Coast markets, is resulting in rising tour activity, increasing average deal size, and a strong leasing pipeline. This trend should drive higher occupancy and ultimately top-line revenue growth as well as improved earnings visibility over the next several years.

Read the complete narrative.

What bold forecasts justify this sharp disconnect between price and potential? Get ready to discover the ambitious revenue and profit assumptions that anchor this narrative’s valuation. The answer is anything but typical for an office REIT. Peel back the layers to see what might power a true turnaround.

Result: Fair Value of $3.23 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent hybrid work trends and HPP's heavy West Coast tech exposure could limit office demand and weaken the anticipated rebound.

Find out about the key risks to this Hudson Pacific Properties narrative.

Another View: Caution From Market Multiples

Looking at Hudson Pacific Properties through the lens of price-to-sales, the company trades at 1.2 times sales, which is cheaper than both the US Office REITs industry average of 2.2x and the peer average of 2.3x. However, it is slightly above its fair ratio of 1x, suggesting that while there is value compared to peers, underlying risks may remain. Could this small premium be justified, or does it indicate a potential concern for buyers?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Hudson Pacific Properties Narrative

If you have a different perspective or want to dig into the details yourself, it takes under three minutes to build your own view. Do it your way

A great starting point for your Hudson Pacific Properties research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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