Compass Point Reiterates on 'Attractive & Valuable' Howard Hughes Summerlin MPC

In a report published Monday, Compass Point Research & Trading, LLC analyst Wilkes Graham reiterated a Buy rating on shares of The Howard Hughes Corporation (NYSE: HHC) and raised the price target from $190.00 to $200.00 following a tour of Summerlin MPC in Las Vegas, Nevada.

Graham toured Howard Hughes largest asset, Summerlin MPC, which covers 5,000 acres of saleable residential property and commercial real estate opportunities.

The analyst wrote, “Following our tour, we have dramatically increased our conviction in the potential for future commercial developments in Summerlin South following the expected opening of the 1.55 million square foot Shops at Summerlin later this year. The $10/share increase in our price target reflects the addition to our Development DCF for Summerlin of 6.0MSF of future commercial density at the 279 acres adjacent to or near the 106 acres where the Shops at Summerlin are currently being built as well as minor tweaks to our residential and commercial Summering land sales DCF.”

Compass Point noted that the Summerlin residential land is more attractive and the developable land in Las Vegas is less available than initially thought. In addition, the Shops at Summerlin and other commercial land is “much, much more valuable than our previous assumptions.”

Shares of Howard Hughes Corporation closed at $140.15 on Thursday.