Analyst Ari Klein from BMO Capital maintained a Hold rating on Marriott International and increased the price target to $280.00 from $265.00.
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Ari Klein’s rating is based on a combination of factors influencing Marriott International’s current and future performance. Although Marriott delivered better-than-expected results in the second quarter, largely due to increased other lodging revenue, the company lowered its 2025 guidance, with particular weakness anticipated in the third quarter. This pattern of fluctuating earnings is common in the lodging sector, though the fourth quarter shows promise due to group and calendar advantages.
Despite Marriott’s attractive relative valuation compared to peers, such as Hilton, Klein remains cautious due to ongoing fundamental uncertainties and medium-term risks associated with low construction levels. While the luxury and international segments are performing well, and there is a healthy demand for group bookings beyond 2025, near-term bookings are weaker than expected with higher attrition rates. Additionally, while leisure travel remains a strong and growing segment, these mixed signals contribute to the Hold rating.
In another report released today, Mizuho Securities also maintained a Hold rating on the stock with a $274.00 price target.
Based on the recent corporate insider activity of 79 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MAR in relation to earlier this year.