On Thursday, Argus analysts increased their stock price target for Marriott International (NASDAQ:MAR) to $330, up from the previous target of $300, while reiterating a Buy rating on the stock. The revision comes as a response to the recent upward movement in Marriott's share price. The new target sits at the high end of analyst estimates, which range from $200 to $328, according to InvestingPro data.
The analysts at Argus highlighted Marriott's profitable fee-based business model, strong liquidity, and focus on corporate travel as key factors that position the company for potential earnings growth in 2025.
They noted that these elements contribute to Marriott's favorable outlook and support the decision to raise the price target. The company's impressive gross profit margin of 82% and revenue growth of 7.25% in the last twelve months support this positive outlook. InvestingPro analysis indicates the company maintains a GREAT overall financial health score.
Marriott International's global operating model was also mentioned as a significant advantage. The ability to expand room capacity worldwide is seen as a long-term positive for the company, suggesting a robust strategy for growth.
The company's emphasis on corporate travel is particularly relevant as industries worldwide continue to adapt and recover from the impacts of the pandemic. Marriott's strategic focus in this area could be beneficial for its financial performance going forward.
The new price target of $330 reflects the analysts' confidence in Marriott's future performance and their expectation of the company's continued success in the hospitality industry. The Buy rating indicates that Argus analysts believe the stock will outperform the market or its sector in the near future.
In other recent news, Marriott International has seen a flurry of financial adjustments and projections. The company acquired Postcard Cabins, an outdoor hospitality brand, in a strategic move to cater to growing demand for nature-immersive travel.
Meanwhile, Truist Securities has raised the price target for Marriott to $277, maintaining its Hold rating. The revision is based on an increased multiple applied to the company's projected earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2025.
TD Cowen, while maintaining its Buy rating on Marriott, reduced the stock's price target from $295.00 to $283.00, reflecting the company's third-quarter performance and future expectations. BofA Securities increased its price target for Marriott to $300, retaining a Neutral rating. This new target is based on the company's third-quarter 2024 results and revised operating assumptions.
On the international front, Truist Securities indicated a modest upside for fourth-quarter hotel revenue per available room (RevPAR) compared to company and consensus expectations. The firm also highlighted Wyndham Hotels as a standout value name in the hotel C-Corp sub-sector, with the company holding a 'Buy' rating from Truist. These are the recent developments in the financial landscape of Marriott International and Wyndham Hotels.
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