Macerich is Zacks' Bear of the Day

Zacks Equity Research, Chicago, designated Santa Monica, Calif.-based real estate investment trust Macerich as its Bear of the Day. Zacks said its long-term recommendation for the company's stock is underperform as it anticipates Macerich, which specialized in regional and community shopping centers, to perform well below the broader market. "The prolonged recession has led to increased tenant bankruptcies, reduction in disposable income, and lower consumer discretionary spending. In addition, Macerich has an active development pipeline, which increases operational risks in the current credit-constrained market," Zacks said. On the positive side, Macerich is one of the largest operators in its segment with assets in high barrier-to-entry markets, which has enabled it to hold rents fairly stable. Zacks said Macerich's stock is trading at a premium to the peer group, based on forward funds for operations estimates and gives it a target price of $38.00.