Macerich price target lowered to $18 from $20 at Compass Point

Compass Point lowered the firm’s price target on Macerich to $18 from $20 and keeps a Buy rating on the shares. Based on the first quarter results and withdrawn 2024 guidance, the firm is reducing its 2024 FFO estimate by 6.6% and 2025 outlook by 9.3%, but it argues that investors continue to underestimate the significant growth potential for “A” mall owners and views the market reaction to earnings as “overdone.” The firm adds that it believes the new CEO’s message “did not receive a warm welcome from the market and more regular communication will be required to build up investor confidence.”