FBR Capital Upgrades Marriott International (MAR) to Outperform; Potential Upside Trumps Lingering Questions
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Price: $244.06 +1.82%
Rating Summary:
15 Buy, 22 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
15 Buy, 22 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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FBR Capital upgraded Marriott International (NYSE: MAR) from Market Perform to Outperform. PT $43.
FBR analyst says, "MAR has significantly underperformed lodging peers and the S&P over the past 12 months and is now trading at ~10x 2012E EV/EBITDA; we see shares as very attractively valued. Six months ago during MAR's investor day, we believed MAR stock (including timeshare) could approach $60 by the end of 2013, which at that time was a respectable 15% three-year CAGR. We still believe it could worth nearly $60 by the end of 2013 and with the stock $2 cheaper than it was on the investor day, and 2013 now six months closer, the potential CAGR is more than 20%. Management did a decent job in explaining the 1Q RevPAR underperformance, which was something that made us nervous going into MAR’s earnings, although we still are not entirely sure (and probably never will be) if the sales force realignment had something to do with it."
For more ratings news on Marriott International click here and for the rating history of Marriott International click here.
Shares of Marriott International closed at $35.87 yesterday.
FBR analyst says, "MAR has significantly underperformed lodging peers and the S&P over the past 12 months and is now trading at ~10x 2012E EV/EBITDA; we see shares as very attractively valued. Six months ago during MAR's investor day, we believed MAR stock (including timeshare) could approach $60 by the end of 2013, which at that time was a respectable 15% three-year CAGR. We still believe it could worth nearly $60 by the end of 2013 and with the stock $2 cheaper than it was on the investor day, and 2013 now six months closer, the potential CAGR is more than 20%. Management did a decent job in explaining the 1Q RevPAR underperformance, which was something that made us nervous going into MAR’s earnings, although we still are not entirely sure (and probably never will be) if the sales force realignment had something to do with it."
For more ratings news on Marriott International click here and for the rating history of Marriott International click here.
Shares of Marriott International closed at $35.87 yesterday.
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