Marriott International (MAR) PT Lowered to $274 at Mizuho

Mizuho analyst Ben Chaiken lowered the price target on Marriott International (NASDAQ: MAR) to $274.00 (from $285.00) while maintaining a Neutral rating.

The analyst commented: "The upside in 2Q EBITDA ($1.415bn vs our $1.375bn/Street's $1.384bn and guide $1.37bn-$1.39bn) reflects the durability of the asset-light model despite RevPAR moderation in a stable NUG environment, with flow-through of 90% YoY in 2Q vs our expectation of 53%.

International markets (ex. China) continue to outperform US/Canada, while government travel has declined since March (2Q government room nights down 16% YoY), while trends appear to have stabilized. While there is limited visibility (compressed booking windows), and an underlying acceleration in RevPAR is hard to underwrite, the 2H set-up should improve due to calendar/easier comps.

Lastly, we struggle to see higher than MSD unit growth in the out years, which prevents us from getting more constructive (as that appears to be the base expectation), so without an underlying RevPAR acceleration story we think shares are range-bound."

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