UPDATE: MKM Partners Upgrades Marriott Vacations Worldwide (VAC) to Buy
MKM Partners upgraded Marriott Vacations Worldwide (NYSE: VAC) from Neutral to Buy with a price target of $100.00 (from $97.00). Shares declined Thursday after the company reported Q2 results. Analyst Christopher Agnew call the move an "overreaction to strong earnings."
Agnew explained, "The market over-reacted in our view to a solid set of numbers and we see a number of key trends accelerating in 2H, most notably share repurchases, that provides a compelling opportunity in our view on this pullback. We are upgrading VAC to Buy (from Neutral) and increasing our 12-month price target to $100 (prior $97 FV). (1) VPG can be lumpy quarter to quarter and we expect a re-acceleration in 2H. (2) Share repurchases should accelerate in 3Q following an unusually short buying window in 2Q. (3) VAC increased its FY15 FCF guidance and reiterated FY EBITDA and EPS guidance."
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 $83.55 yesterday.