Nomura Securities Maintains a 'Buy' on Marriott International (MAR); Strong FCF and ROIC Make MAR Our Top Pick

Nomura Securities maintains a 'Buy' on Marriott International (NYSE: MAR) price target raised from $35 to $38.

Nomura analyst, Harry Curtis, said, "We believe that MAR offers the strongest risk/reward in the gaming/lodging/leisure space for 2012. We are raising our 12-month target price to $38 from $35, 30% potential upside. In 2012, a positive supply/demand imbalance, strong corporate profit growth, over 5% RevPAR growth, 8%-9% free cash flow yields, and an EPS CAGR of over 20% through 2013 should lead to sector outperformance. Less than 5% of MAR’s revenue and EBITDA are euro-denominated which should be attractive to investors seeking to invest with a domestic bias. Lastly, in 2012, MAR should generate cash flow of ~ $850m after maintenance CapEx, which translates into an 8.6% free cash yield (increasing to 10% next year)."

For an analyst ratings summary and ratings history on Marriott International click here. For more ratings news on Marriott International click here.

Shares of Marriott International closed at $29.17 yesterday.

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