UPDATE: Citigroup Raises PT to $65.25 on Macerich on Peer Valuation

Citigroup reiterated its Buy rating on Macherich MAC and increased its price target from $61.50 to $65.25. Citigroup commented, "We believe there is share price upside given MAC trades at a discount to high productivity mall peers. The discount will likely close following MAC's recent de-levering from their equity raising and from acquisitions now that the company is sitting on significant liquidity (cash plus line of credit capacity). Macerich's portfolio is likely to perform inline with similar high productivity mall peers. MAC's low occupancy cost ratio could provide upside as tenant sales increase and rents trend upward. While high exposure to AZ and CA were concerning during the downturn, it appears that these markets have started to stabilize and could be growth drivers going forward." Macherich closed at $57.34 on Tuesday.