Price Forecast:

Bullish Case: Renewed confidence in HPP may arise from strategic asset management and economic recovery signals from the tech sector, potentially driving a rebound to $4.50 over the next year.

Bearish Case: Continued external pressures from entertainment industry strikes and rising interest rates could exacerbate HPP’s operational difficulties, pushing shares down to $1.50.

Potential Outcomes:

• Market recovery boosts HPP value (40% chance)
• Continued strikes hinder operational recovery (45% chance)
• Successful strategic pivot in real estate secures stability (30% chance)
• Analyst downgrades create negative sentiment (35% chance)

Trading Oracle: Consider a bullish debit spread using HPP 01/15/2025 2.50 C and 5.00 C to leverage low volatility and potential recovery, aiming for a target price of $4.50 in 6-12 months. The current volatility environment suggests attractive price premiums, providing a high reward-to-risk outlook.

December 19, 2024