MAC - Macerich stock rises after Deutsche Bank upgrades as leasing activity increases

Vera_Petrunina/iStock via Getty Images Macerich (MAC) stock gains 2.6% in premarket trading after Deutsche Bank analyst Derek Johnston upgrades the shopping mall REIT to Buy as its leasing velocity outweighs elevated leverage and capital expenditure concerns. "Leasing momentum and demand continues its positive surprise as we reach pandemic escape velocity with traditional and new categories showing strong interest in high quality class A town centers," Johnston writes in a note to analysts. Views MAC as top value investment among REITs the analyst covers given the stock's ~5x turn discount to pre-COVID next twelve month price/FFO levels. Johnston also forecasts that the occupancy inflection point is behind MAC as the "the business has stabilized and is poised to resume growth, albeit from a lower base." The Buy rating contrasts with the Neutral Quant rating and the average Wall Street rating of Bearish (2 Very Bullish, 1 Bullish, 5 Neutral, 3 Bearish, 6 Very Bearish).

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Macerich stock rises after Deutsche Bank upgrades as leasing activity increases