Nomura Securities Maintains a 'Buy' on Marriott International (MAR); Hitting Stride - Strong Risk/Reward Profile
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Price: $356.72 +1.19%
Rating Summary:
19 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
19 Buy, 18 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on Marriott International (NYSE: MAR) price target of $43.00.
Analyost, Harry C. Curtis, said, "We think the stock could reach the upper 40’s using 2013 EBITDA estimates. We have several points of support following MAR’s strong outlook for 2012 demand. At the end of the 1Q, MAR’s 2012 group bookings (aided by MAR’s new national sales platform) were 11% ahead of the time last year, a 200bps increase from 4Q11. We expect Incentive Management Fees (IMFs) to grow ~20% per annum through 2014, as returning group demand drives higher ADRs and margin, triggering IMF payments. YTD, MAR has purchased 6.7m shares for $245m. We expect MAR to buy ~$800m of stock per year for the next three years, funded by operations and additional borrowing. Despite improved returns (30% ROIC, up from pre-spin of ~15%) and lower capital investment requirements, the stock continues to trade at a 100-200bps discount to its peers."
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 $39.45 yesterday.
Analyost, Harry C. Curtis, said, "We think the stock could reach the upper 40’s using 2013 EBITDA estimates. We have several points of support following MAR’s strong outlook for 2012 demand. At the end of the 1Q, MAR’s 2012 group bookings (aided by MAR’s new national sales platform) were 11% ahead of the time last year, a 200bps increase from 4Q11. We expect Incentive Management Fees (IMFs) to grow ~20% per annum through 2014, as returning group demand drives higher ADRs and margin, triggering IMF payments. YTD, MAR has purchased 6.7m shares for $245m. We expect MAR to buy ~$800m of stock per year for the next three years, funded by operations and additional borrowing. Despite improved returns (30% ROIC, up from pre-spin of ~15%) and lower capital investment requirements, the stock continues to trade at a 100-200bps discount to its peers."
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 $39.45 yesterday.
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