Piper Sandler upgraded Macerich to Overweight from Neutral on Thursday, citing an improved outlook for funds-from-operations (FFO) growth following the company's recent updates.
The brokerage raised its price target to $30.00 from $28.00, indicating a potential 24% upside from the stock's $24.18 trading price. Piper Sandler also revised Macerich's FFO target to approach $1.95 from an original $1.80, incorporating post-NAREIT conference adjustments. The firm noted that Macerich's FFO yield remains below 7%, enabling accretive acquisitions at cap rates above 9%.
Macerich reported a 3.8% increase in net operating income (NOI) at its go-forward properties for the second quarter of 2026, alongside record sales productivity and higher occupancy. The company is on track to achieve at least 3% full-year NOI growth for 2026. Year-to-date, Macerich shares have gained 33%, with a dividend yield of 2.81% and a 33-year history of consistent payouts.
Piper Sandler also updated estimates for several other retail REITs, including CSR, CURB, SPG, BXP, DEI, COLD, and LINE, incorporating second-quarter 2026 results and post-quarter refinements for BXP and CURB.
