Ronald Kamdem, an analyst from Morgan Stanley, maintained the Hold rating on Macerich (MAC – Research Report). The associated price target remains the same with $20.00.
Ronald Kamdem has given his Hold rating due to a combination of factors influencing Macerich’s current financial position and future prospects. The company’s recent earnings showed a slight beat in Funds From Operations (FFO), but the anticipated flat growth in same-store Net Operating Income (NOI) over the next few years poses a challenge. Despite a reduction in leverage, which is a positive development, the rising interest costs could hinder the company’s ability to achieve its FFO targets in the medium term.
Furthermore, Macerich’s strategic initiatives, such as asset sales and refinancing, are steps in the right direction, but the full impact of these measures is yet to be realized. The company’s focus on increasing leasing volume and improving occupancy rates is promising, yet the current occupancy levels and the pace of achieving leasing goals suggest that significant progress is still needed. These elements combined lead to a cautious outlook, justifying the Hold rating as the company navigates these transitional phases.
Kamdem covers the Real Estate sector, focusing on stocks such as Healthpeak Properties, Welltower, and Prologis. According to TipRanks, Kamdem has an average return of 5.0% and a 56.91% success rate on recommended stocks.
In another report released yesterday, Truist Financial also maintained a Hold rating on the stock with a $23.00 price target.