Mizuho upgrades Hudson Pacific to Neutral on balanced risk/reward

Mizuho analyst Vikram Malhotra upgraded Hudson Pacific to Neutral from Underperform with a price target of $7, down from $10. The analyst sees a more balanced risk/reward for Hudson Pacific with several negatives, like tenant move-outs, an uncertain Studio business trajectory and financial covenant concerns balanced by potential improvement in San Francisco fundamentals progress on the actors’ strike during the next 3-6 months several actions to shore up the balance sheet. The firm adds the company’s absolute cap rate at over 10% and relative risk-premium versus pre-COVID screens the most attractive in its coverage.