UPDATE: Deutsche Bank Downgrades Macerich On Valuation

In a report published Thursday, Deutsche Bank analyst Vin Chao downgraded the rating on

from Buy to Hold, but reiterated the $78.00 price target. In the report, Deutsche Bank noted, “We are downgrading MAC from Buy to Hold on valuation given the run up in shares following SPG disclosing taking a stake in the company. While a potential SPG deal could mean further upside to shares, based on current valuation, the company appears fairly valued, trading at an 4.6% implied cap rate and 21.0x 2015 FFO relative to peers at 4.8% and 19.2x respectively. Also, should SPG announce the exit of its 3.6% stake, we think MAC shares would initially trade down to the pre-SPG stake announcement range in the high 60's or low 70's.” Macerich closed on Wednesday at $82.11.