Citi Calls Howard Hughes 'Underfollowed, Undervalued, Not Fully Understood'; Initiates At Buy

Citi Bank's Will Randow initiated Howard Hughes Corp (NYSE: HHC) at Buy with a lofty price target of $165.00.

Because "the stock remains underfollowed, undervalued, and not fully understood," Randow said Howard Hughes is "a compelling investment opportunity." This low perceived valuation was due largely to the "unique nature of the company," which only attracts "limited sell-side coverage," the analyst stated.

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'Steep EBITDA Ramp Up'

Due to attractive margins, healthy net operating income and sales growth, Randow believes Hughes would "continue to exhibit a steep EBITDA ramp up" in the future. The analyst also praised the company's ability to convert projects into stable cash flow streams.

Howard Hughes closed Thursday's regular session at $103.61.