BMO Capital upgraded Hudson Pacific Properties (NYSE:HPP) to Outperform, raising its price target to $5.00 from $4.00, suggesting 66% upside potential as the company makes progress on de-risking its balance sheet.

Analysts cited the stock’s 53% decline over the past year amid weak performance in both office and studio segments, which had led investors to price in concerns over potential insolvency. However, recent steps taken by Hudson Pacific—including strategic asset sales, debt financing, and a newly secured $475 million CMBS transaction—are providing breathing room and stabilizing liquidity through 2026.

These moves are helping to alleviate pressure from near-term debt maturities, offering the company time to focus on operational improvements and unlocking value across its real estate portfolio.

While challenges in the office space market persist, BMO sees valuation support and upside opportunity as Hudson Pacific navigates through its restructuring and capital optimization strategy.