Real estate development firm Howard Hughes Holdings (HHH) saw its stock surge last week following an announcement from Bill Ackman’s Pershing Square Holdings. The investment firm revealed plans to acquire 9 million newly issued shares from the real estate company at $100 per share. 

This marks a notable increase from their initial bid of $85 per share for a controlling stake, while simultaneously reducing their ownership percentage. The strategic move underscores Howard Hughes' intent to overhaul its investment approach, bolstering commitments across both public and private sectors. 

Pershing Square’s involvement will extend beyond equity acquisition, offering comprehensive support including financial advice, transaction facilitation, and strategic market positioning. Moreover, the partnership aims to shield Howard Hughes from macroeconomic risks through prudent hedging strategies.

So, let us see whether HHH stock is currently a wise investment choice.

About Howard Hughes Stock

Howard Hughes Holdings (HHH), currently valued at $3.7 billion, owns, manages, and develops a diversified portfolio of commercial, residential, and mixed-use real estate projects across the United States. 

Over the past 52 weeks, HHH posted a steady 8.4% gain, a sign of resilience amid broader market fluctuations. Shares are down approximately 6.6% in the year to date. 

A Closer Look at Howard Hughes’ Q1 Earnings

The company’s most recently reported earnings on May 7. Net income from continuing operations rebounded to $10.8 million, or $0.21 per diluted share, reversing a loss of $21 million, or $0.42 per share, in the same period last year. Adjusted operating cash flow reached $63 million, or $1.27 per diluted share, further underscoring the company’s operational resilience and improved cash generation.

For the current quarter, analysts expect a massive 135% jump in earnings per share to $0.99. For the full year, however, earnings are forecast to fall 75% to $1.43. Analysts then guide for a return to annual EPS growth in 2026, with a 94% jump to $2.43. 

What Do Analysts Expect for Howard Hughes Stock?

JPMorgan Chase analyst Anthony Paolone recently painted a bullish picture for Howard Hughes, dubbing its deal with Pershing Square as nothing short of a transformational shift. His outlook echoes a broader sentiment on Wall Street, where confidence in the stock has gathered real momentum. 

All three analysts who have offered their take stand unanimously on one side of the fence, each labeling the stock a “Strong Buy,” a rare show of consensus. The average price target of $89 represents potential upside of 25%, while the Street-high target of $105 suggests that the stock can climb as much as 48% from the current price level.