Goldman Sachs has downgraded its rating for Marriott International (MAR, Financial), moving it from "Buy" to "Neutral." The firm also adjusted its price target for the hotel giant, cutting it to $245 from a previous target of $313. This revision comes as Goldman Sachs anticipates challenges in macro-sensitive segments, driven by recent economic volatility and pressures on consumer spending.
Despite the downgrade, the financial institution acknowledged the strength of Marriott's business model, highlighting its substantial cash flow per share growth and robust balance sheet. These attributes are shared with Hilton, suggesting both companies maintain a solid financial foundation.
However, the valuations of Marriott's stocks remain elevated compared to the 2016-2019 period. Goldman Sachs believes that current consensus estimates might still be overly optimistic, resulting in a risk-reward balance that is less favorable under current market conditions.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 22 analysts, the average target price for Marriott International Inc (MAR, Financial) is $286.73 with a high estimate of $348.00 and a low estimate of $205.00. The average target implies an upside of 27.31% from the current price of $225.22. More detailed estimate data can be found on the Marriott International Inc (MAR) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Marriott International Inc's (MAR, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Marriott International Inc (MAR, Financial) in one year is $279.25, suggesting a upside of 23.99% from the current price of $225.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Marriott International Inc (MAR) Summary page.
