Mizuho Securities analyst Haendel St. Juste maintained a Hold rating on Macerich (MAC) yesterday and set a price target of $48. The company’s shares opened today at $42.44, close to its 52-week low of $40.90.
Juste noted:
“We can’t quite fully explain the entirety of the FFO shortfall, after taking down our numbers (twice) recently, but offer the following potential explanations / perspectives. First, the shortfall has nothing to do with the new lease accounting changes, as MAC assumed previously guided to a ~$0.17/sh impact. Second, there is a $30M-ish gap to our FFO that we can’t quite explain and believe it may have to do with conservatism surrounding troubled retailers Sears and JCP (and others?) and perhaps also by expected lower returns on redevelopments. Should these events prove less draconian, there is the potential for MAC to subsequently raise its FY19 guidance later this year. Third, the MAC print is a negative read-through for peer (TCO), who reports next week.”
According to TipRanks.com, Juste is a 3-star analyst with an average return of 1.2% and a 53.3% success rate. Juste covers the Financial sector, focusing on stocks such as Camden Property Trust, Spirit Realty Capital, and American Assets Trust.
Currently, the analyst consensus on Macerich is a Hold with an average price target of $50.09, which is a 18.0% upside from current levels. In a report released today, Wells Fargo also downgraded the stock to Hold with a $43 price target.
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The company has a one-year high of $61.91 and a one-year low of $40.90. Currently, Macerich has an average volume of 1.37M.
Based on the recent corporate insider activity of 22 insiders, corporate insider sentiment is neutral on the stock.
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Macerich Co. operates as a real estate investment trust, which engages in the acquisition, ownership, development, redevelopment, management and leasing of regional and community shopping centers located throughout the United States. It conducts all of its operations through the operating partnership and the management companies.
