Morgan Stanley analyst Richard Hill downgraded Macerich (MAC) to Underweight and lowered his price target for the shares to $45 from $58. The analyst believes the market is underappreciating the company's free cash flow declines in 2019 and 2020. Macerich's dividend payout ratio is over 100% of free cash flow, says Hill. Further, the consensus believes Macerich is a more likely takeover candidate than Taubman (TCO), "but it's not a given to us," Hill tells investors in a research note. The analyst coupled the downgrade of Macerich with an upgrade of Taubman to Equal Weight.