UPDATE: D.A. Davidson Initiates Coverage On Hudson Pacific Properties On Blackstone Deal Announcement

In a report published Friday, D.A. Davidson analyst Barry Oxford initiated coverage on Hudson Pacific Properties HPP with a Buy rating and $35.00 price target. In the report, D.A. Davidson noted, “HPP recently announced a transforming deal with Blackstone, buying 26 properties in the San Francisco Peninsula and nearly doubling the size of the company. Going-in yield cap rate is 5.1% but this could easily go to 7% or more as occupancy and mark-to-market on lease are released. The stock trades at par with NAV and 21.4x 2015 FFO; with a forecasted NAV per share premium of 5% and 24.8x 2015 FFO, we rate the shares BUY.” Hudson Pacific Properties closed on Thursday at $29.27.