Nomura Securities Reiterates a 'Buy' on Marriott (MAR); Valuation of VAC

Nomura Securities reiterates a 'Buy' on Marriott International (NYSE: MAR) price target of $35.00.

Nomura analyst, Harry Curtis, said, "After attending the Marriott Vacations Worldwide (VAC) analyst day, we present investors with several valuation scenarios given its 2012 estimated EBITDA, debt structure and share count. We estimate a base case of $20 for VAC’s equity value and $3 for the land and excess inventory. Our analysis of shareholders indicates 30% of holders could be forced to sell shares of VAC because of conflicts with their investment criteria and 30% may sell shares due to investment preference. During periods of sluggish economic growth, 0-2%, the stock has traded at 11x. MAR is now trading at an 8% discount to that multiple. Using 11x, the stock should trade at $35 before adding value for VAC of $2.30 per MAR share."

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 $31.48 yesterday.

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