Wall Street Analysts Just Trimmed Price Targets for These 10 Stocks

05. The Macerich Company (NYSE:MAC)

Price Reaction after the Price Target Cut: -0.01(-0.07%)

On June 17, The Goldman Sachs Group revised its outlook on The Macerich Company (NYSE:MAC), lowering the price target from $14.00 to $12.50 and assigning a “sell” rating to the stock. Following this adjustment, The Macerich Company (NYSE:MAC) stock price reacted with a slight decrease of 0.07%. Goldman Sachs’ decision to lower the price target and designate a “sell” rating reflects concerns about The Macerich Company (NYSE:MAC) financial performance and the challenging operating environment in the real estate investment trust (REIT) sector. In its latest quarterly earnings announcement on April 30, the company reported a normalized Funds from Operations (FFO) of $0.31 per share, missing expectations by $0.08, and a GAAP EPS of -$0.59, falling short by $0.49. However, Macerich managed to surpass revenue estimates, posting $208.78 million, which exceeded expectations by $5.26 million.

Here’s how Smead Capital Management mentioned The Macerich Company (NYSE:MAC) in the Q2, 2022 investor letter:

“Leading the downside were stocks we own tied to any economic optimism. Warner Bros. Discovery (WBD) suffered selling from AT&T (T) shareholders disposing of it upon distribution of the shares in the merger. We have been too optimistic about how long it would take for these uninterested parties to sell. The Macerich Company (NYSE:MAC) suffered from fears of what a recession and higher interest rates would do to their business, disregarding the recovery in the Class “A” mall space since 2020.”