Compass Point Reiterates Buy on Howard Hughes (HHC)

Compass Point is out with its report today on Howard Hughes HHC, reiterating Buy. In a note to clients, Compass Point writes, "We reiterate our Buy rating and $75 price target on shares of HHC. HHC reported a solid 1Q11, with After Tax Cash Flow earnings of $0.39 versus our estimate of $0.10. Given our long-term thesis on the stock that the value of the development pipeline is more important than either quarterly earnings or incremental improvements in land sales and valuations, we are more impressed with the company's two recent development staff hires. Our $52 As-Is NAV and our $75 As-Developed NAV are both unchanged, and the latter continues to assume that 3 projects are started by year-end 2012." Shares of HHC closed Thursday at $67.03.