Marriott stock price target raised to $327 by Bernstein on 2026 outlook

Investing.com - Bernstein SocGen Group raised its price target on Marriott International (NASDAQ:MAR) to $327.00 from $309.00 on Wednesday, while maintaining an Outperform rating on the hotel chain’s stock. The new target represents significant upside potential for the $72.72 billion hospitality giant, which currently trades near InvestingPro’s Fair Value estimate.

The research firm expressed optimism about Marriott’s 2026 prospects, noting that the company is "not really underperforming Hilton on fee revenue growth" but has been affected by one-off factors this year. The company maintains impressive gross profit margins of 81.69% and has demonstrated steady revenue growth of 4.85% over the last twelve months.

Bernstein expects Marriott to show improvement in net unit growth (NUG) in 2026, driven by the company’s mid-scale push, upgraded technology infrastructure, and recent outperformance in loyalty program growth.

The firm highlighted that Marriott’s Bonvoy program "should still be the gold standard for hotel owners to be part of," reinforcing the company’s competitive position in the hospitality industry.

Bernstein also pointed out that while Marriott’s cash conversion and capital return have lagged behind Hilton in 2025 due to earlier releveraging efforts and investments in technology and refurbishments, this trend is expected to reverse starting in 2026. The company maintains a moderate debt level with a total debt to capital ratio of 0.19, suggesting a balanced approach to financial management.

In other recent news, Marriott International reported its second-quarter 2025 financial results, surpassing both earnings and revenue expectations. The company achieved an EPS of $2.65, which exceeded the forecast of $2.61, and reported revenue of $6.74 billion, surpassing the anticipated $6.65 billion. Additionally, Marriott announced a quarterly cash dividend of 67 cents per share, payable on September 30, 2025, to shareholders of record as of August 21, 2025. The company also expanded its share repurchase program, authorizing an additional 25 million shares for buyback.

In analyst updates, Mizuho maintained a Neutral rating on Marriott while lowering its price target to $274 from $285, citing concerns over Revenue Per Available Room (RevPAR). Despite these concerns, Marriott’s second-quarter EBITDA of $1.415 billion exceeded both Mizuho’s estimate of $1.375 billion and the Street consensus of $1.384 billion. These developments reflect the resilience of Marriott’s asset-light business model amid moderating RevPAR.

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