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Goldman Sachs Upgrades Marriott Vacations Worldwide (VAC) to Buy, Sees 27% Upside

May 10, 2012 7:17 AM EDT
Get Alerts VAC Hot Sheet
Price: $97.84 --0%

Rating Summary:
    9 Buy, 6 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 5 | New: 36
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Goldman Sachs upgraded Marriott Vacations Worldwide (NYSE: VAC) from Neutral to Buy with a price target of $38 (up from $29.50), citing solid cash flow with margin opportunities.

"We have become more confident in VAC's story and view it as a solid cash flow producer with an inexpensive valuation," the firm said. The firm believes VAC could accumulate $700 million of cash by 2016 or even more including land sales.

Shares are "primed for outperformance" trading at just 5.9X 2013 EV/EBITDA, boasting a 12% free cash flow yield and fundamental story of EBITDA and margin growth.

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

Shares of Marriott Vacations Worldwide closed at $29.98 yesterday.


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