Hudson Pacific Properties (HPP) could witness continued momentum in office and studio leasing as the operating environment for the West Coast improves, BofA Securities said in a Monday research note.

The company's recent equity raise offers management flexibility to ramp efforts on leasing its West Coast office portfolio as return-to-office trends improve across the region, partly driven by the acceleration of artificial intelligence company creation and growth, according to the note.

Recent policy changes like California's new expanded film and television tax credit have more than doubled the annual amount producers can be refunded for film and TV production, expected to drive the company's studio leasing business and its Quixote studio servicing business, especially after management trimmed expenses for these segments, analysts wrote.

The brokerage expects Q3 funds from operations of $0.04 per share. For 2025, 2026, and 2027, BofA expects FFO of $0.21, $0.25, and $0.30, respectively.

The brokerage said it reinstated its coverage with neutral rating on the stock and a price target of $3 per share.

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