Marriott Stock falls on Evercore’s demotion to In-Line
Marriott International (MAR) – Get the report from Marriott International, Inc. (MAR) shares fell on Tuesday, after Evercore ISI downgraded the giant hotel chain to fail to outperform due to valuation considerations.
Granted, Evercore analyst Rich Hightower raised his share price target to $ 160 from $ 145 to account for recent market activity.
The stock traded at $ 155.70 on Tuesday, down 2.2% the last check. It has jumped 16% in the past three months in anticipation of an increase in travel.
While the hospitality industry is recovering better than many analysts expected, Marriott’s stock is already the cause, leaving little room for action to rise further, Hightower wrote in a comment cited by CNBC.
“The transition to [in-line] is just a call for evaluation, ”he wrote.
Still, Hightower upped its profit estimates for the hospitality industry as a whole for the second half of the year. This reflects “better than expected fundamental performance through September,” he said.
Morningstar analyst Dan Wasiolek estimates the fair value at $ 130 for Marriott.
“Narrow Gap Marriott’s global revenue per available room in the second quarter improved to 56% from 2019 levels (vs. 62% for Hilton), from 42% in the first quarter (45%)” , he wrote in August.
“We were encouraged to learn that group bookings in the United States for all future dates returned to 71% of pre-pandemic marks in June, up sharply from 44% in March, rates having largely recovered.
“As a result, we plan to keep our RevPAR 2021 forecast at the low levels of the 60s of 2019, with a full recovery by 2023. We do not expect a material change from our fair value estimate of $ 130. , leaving stocks slightly overvalued. “