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Cautious Outlook on Marriott International Amid Mixed Financial Signals and High Valuation

Cautious Outlook on Marriott International Amid Mixed Financial Signals and High Valuation

Analyst Ari Klein of BMO Capital maintained a Hold rating on Marriott International (MARResearch Report), retaining the price target of $296.00.

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Ari Klein has given his Hold rating due to a combination of factors impacting Marriott International’s financial outlook. Despite Marriott’s positive performance in the fourth quarter, with adjusted EPS and fees exceeding expectations, the company faces a mixed forecast for 2025. The anticipated fee growth of 4.9% does not align with the RevPAR plus net unit growth guidance of 7.5%, indicating a deviation from its long-term growth algorithm.
Additionally, while general and administrative cost reductions are expected to provide some relief, the elevated capital expenditures and lower capital return guidance add to the uncertainty. The company’s valuation remains high at 17.5 times the 2025 EV/EBITDA, making its stock less appealing in the near term despite attractive long-term growth prospects. Therefore, Klein maintains a Hold rating, suggesting a cautious approach as the market evaluates these mixed signals.

According to TipRanks, Klein is a 4-star analyst with an average return of 5.2% and a 58.47% success rate. Klein covers the Real Estate sector, focusing on stocks such as SBA Communications, Ryman, and American Tower.

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