According to a Reuters consensus of 28 analysts tracking Marriott (MAR), five analysts (17.9%) have a “strong buy” recommendation on the stock, and nine analysts (32.1%) have a “buy” recommendation on the stock. Thirteen analysts (46.4%) have a “hold” rating on Marriott stock, and one analyst (3.6%) gave a “sell” rating. No analysts gave a “strong sell” recommendation for Marriott stock.
There have been a few analyst upgrades before Marriott’s (MAR) 2Q17 earnings. Susquehanna reduced its target price from $122.00 to $120.00 and maintained its positive rating. RBC raised its target price from $92.00 to $109.00. Nomura raised its target price from $100.00 to $121.00 and maintained its “buy” rating.
Barclays raised its target price from $91.00 to $105.00 and maintained its “equal weight” rating. Morgan Stanley raised its target price from $95 to $101 and maintained its “overweight” rating. Evercore ISI raised its target price to $104.00 and maintained its “underperform” rating.
J.P. Morgan (JPM) raised its target price from $102.00 to $111.00 and maintained its “overweight” rating. Stifel raised its target price from $87.00 to $95.00.
Marriott’s (MAR) consensus 12-month target price is $106.43. The current target price indicates a 2.9% return potential on its August 2, 2017, closing price of $103.50. This target price is higher than the previous target price of $97.10 after its 1Q17 earnings release. The highest target price is $121.00, and the lowest target price is $93.00.
Investors can gain exposure to the hotel sector by investing in the First Trust Consumer Discretionary AlphaDEX ETF (FXD), which invests ~15% in the hotel, restaurant, and leisure sector. FXD holds 1.1% each in Wyndham (WYN) and Marriott International (MAR) in its portfolio. It holds 0.55% in Hyatt (H), and it has no holdings in Hilton Worldwide Holdings (HLT).