Balanced Outlook on Macerich: Ambitious Targets Amid Execution Risks Justify Hold Rating

Ronald Kamdem, an analyst from Morgan Stanley, maintained the Hold rating on Macerich (MAC – Research Report). The associated price target remains the same with $19.00.

Ronald Kamdem has given his Hold rating due to a combination of factors that reflect both optimism and caution regarding Macerich’s future performance. The company has laid out ambitious targets for 2028, including a notable increase in Net Operating Income (NOI) to $880 million, which appears achievable given the current leasing momentum and economic conditions. However, there are concerns about the company’s ability to meet its net interest cost target of $285 million, which seems challenging despite recent encouraging debt issuance.
Kamdem also acknowledges the positive steps Macerich has taken in terms of organizational changes and process improvements, which are expected to support future growth. The go-forward portfolio demonstrates solid sales and traffic trends, yet there remains execution risk, particularly in terms of debt reduction. Consequently, while there are promising aspects to Macerich’s strategy, the potential risks and uncertainties justify a Hold rating at this time.

In another report released on May 30, Scotiabank also maintained a Hold rating on the stock with a $16.00 price target.