Macerich: Increased Customer Traffic Offers Growth Potential

Apr. 01, 2022 2:22 PM ETThe Macerich Company (MAC) Stock, , , , , , , , , , 54 Comments
Pearl Investing
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Summary

  • I am initiating coverage of Macerich with a BUY rating. High foot traffic and sales productivity in Macerich's Class A malls have improved and are near the 2019 levels.
  • Macerich has provided strong Q4 2021 earnings and offered solid FY 2022 guidance. Macerich has also reduced its debts and improved debt coverage ratios in Q4 2021.
  • Macerich’s stock is undervalued and is currently trading at a 23.2% discount to NAV of $20.68.

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Overview/Investment Rationale

The retail sector has started to improve from the pandemic disruptions. The 2021 holiday season helped increase customer traffics and tenant sales across malls in the US. The Macerich Company (MAC

This article was written by

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I am an experienced Financial Analyst with more than 15 years of experience and proven working history in the financial services industry. I have expertise in selecting stocks for Buy/Sell-side investment firms. I have experience building financial/economic models in sectors such as REIT, Banking, Oil, Healthcare, Technology, and Timber. I have written numerous initiation reports and investment short thesis. Worked in Commercial Banks and have strong knowledge of core banking and sales processes.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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