NEW YORK (TheStreet) -- Shares of Macerich Co. (MAC - Get Report) are up 0.14% to $78.84 in pre-market trading Thursday after Credit Suisse upgraded the company to "neutral" from "underperform," while maintaining its $78 price target.
The company is a fully integrated self-managed and self-administered real estate investment trust (REIT), which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the U.S.
"The Simon Property Group (SPG) withdrew its $23.2 billion offer to acquire the Macerich Company after the rival mall operator's board rejected an unsolicited bid," the New York Times reported.
Macerich felt that Simon's $95.50 PV offer undervalued the company and that they do not believe this is the right time to sell the company, the Macerich board noted in a statement yesterday, adding that they instead plan to recognize shareholder value through operating margin improvement and development execution/accretion over the coming years.
"They will be under pressure to prove that strategy and value creation relative to the $95.50 PV offer they rejected which was a 4.2% cap rate on our numbers," Credit Suisse said.
Analysts view Macerich as a high quality mall portfolio with significant development upside, but they think that is baked into their price target.
Separately, TheStreet Ratings team rates MACERICH CO as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MACERICH CO (MAC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
You can view the full analysis from the report here: MAC Ratings Report