Marriott stock price target raised to $288 by Goldman Sachs on credit deal potential

Investing.com - Goldman Sachs has raised its price target on Marriott International (NASDAQ:MAR) to $288.00 from its previous target while maintaining a Neutral rating on the hotel chain’s stock. Currently trading at $272.24, Marriott is valued near its InvestingPro Fair Value, with a P/E ratio of 27.91, suggesting a premium valuation.

The firm cited several positive updates from Marriott, with the most significant being the company’s potential to renegotiate a new credit deal in 2026. This would mark Marriott’s first credit economics renegotiation since 2017, when its Bonvoy loyalty program had less than half of its current membership.

Marriott’s credit card fees are tracking toward approximately $720 million this year, and Goldman Sachs notes that even conservative precedent negotiations driving 20% upside could provide meaningful benefits with high flow-through to the bottom line. InvestingPro data shows Marriott maintains impressive gross profit margins of 82.96%, highlighting its operational efficiency.

The hotel chain also provided a preliminary outlook for 2026 global RevPAR (Revenue Per Available Room) growth of 1.5-2.5%, expected to be led by international markets. U.S. RevPAR is anticipated to receive a 30-35 basis point boost from the World Cup, making it slightly stronger than 2025 trends.

Goldman Sachs adjusted its financial projections to account for Marriott’s third-quarter earnings beat, noting the company remains confident in its ability to continue growing net rooms at a mid-single-digit percentage year-over-year for the foreseeable future. The company has delivered strong returns over the last decade and has raised its dividend for 3 consecutive years. For deeper insights into Marriott’s financial health and 10+ additional ProTips, explore the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Marriott International Inc. announced its third-quarter earnings for 2025, surpassing analyst expectations. The company reported an adjusted earnings per share (EPS) of $2.47, compared to the forecasted $2.37. Additionally, Marriott’s revenue exceeded projections, reaching $6.49 billion against an expected $6.47 billion. These results reflect positive developments for the company, indicating strong performance in the recent quarter. Analysts had been closely monitoring Marriott’s financial outcomes, and the results have been well-received. The company’s ability to exceed both earnings and revenue estimates is noteworthy for investors. These developments come amid a backdrop of positive investor sentiment.

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