On Wednesday, Truist Securities updated its financial outlook for Marriott International (NASDAQ: NASDAQ:MAR), raising its price target to $277 from $254. The firm has decided to maintain its Hold rating on the stock. Currently trading at $284.93, near its 52-week high of $290.43, InvestingPro analysis suggests the stock is trading above its Fair Value.
The revision in the price target is based on an increased multiple applied to the company's projected earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year 2025.
Truist Securities now applies a 17.6x multiple to the blended 2025 EBITDA estimates, up from the previous 16.7x. For context, Marriott's current EBITDA stands at $4,113 million, with an impressive gross profit margin of 81.95%. Get deeper insights into Marriott's valuation metrics and 15+ additional ProTips with InvestingPro.
The analyst from Truist Securities provided updated projections for Marriott's future financial performance. The estimated EBITDA for 2024 has been slightly reduced to $4,948 million from the previous forecast of $4,990 million. Additionally, the adjusted earnings per share (EPS) projection for 2024 is now set at $9.23, a slight decrease from the earlier estimate of $9.34.
Looking ahead to 2025, Truist Securities has a more optimistic view. The firm has increased its EBITDA projection for that year to $5,407 million, up from the previous estimate of $5,332 million. The adjusted EPS projection for 2025 has also been raised to $10.69 from $10.61.
The analyst's commentary highlighted the valuation multiples in relation to Marriott's stock performance, noting that the stock is trading at 10.8x and 11.6x the firm's EBITDA estimates for 2024 and 2025, respectively. The new price target reflects the updated multiples and earnings projections for the coming years.
With a current P/E ratio of 29.72x and strong recent performance, investors seeking comprehensive analysis can access Marriott's detailed Pro Research Report, available exclusively on InvestingPro.
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