Mizuho lowers Marriott stock price target to $274 on RevPAR concerns

Investing.com - Mizuho (NYSE:MFG) maintained its Neutral rating on Marriott International (NASDAQ:MAR) while lowering its price target to $274.00 from $285.00 on Wednesday. The $70.5 billion hospitality giant, currently trading at $259.72, maintains a "GOOD" financial health score according to InvestingPro analysis.

The hotel giant reported second-quarter EBITDA of $1.415 billion, exceeding both Mizuho’s estimate of $1.375 billion and the Street consensus of $1.384 billion, demonstrating the resilience of Marriott’s asset-light business model despite moderating RevPAR (Revenue Per Available Room). The company’s impressive 81.89% gross profit margin underscores its operational efficiency.

International markets excluding China continue to outperform the U.S. and Canada, while government travel has declined significantly since March, with second-quarter government room nights down 16% year-over-year, though these trends appear to have stabilized.

Mizuho noted that while visibility remains limited due to compressed booking windows, Marriott’s second-half outlook should improve due to more favorable calendar effects and easier year-over-year comparisons.

The firm expressed skepticism about Marriott achieving higher than mid-single-digit unit growth in future years, which combined with the absence of an underlying RevPAR acceleration story, led Mizuho to conclude that the stock is likely to remain range-bound. According to InvestingPro’s Fair Value analysis, the stock appears slightly undervalued, with 8 additional exclusive ProTips available for subscribers.

In other recent news, Marriott International reported its second-quarter 2025 financial results, surpassing both earnings and revenue expectations. The company achieved an earnings per share (EPS) of $2.65, exceeding the forecasted $2.61. Additionally, Marriott reported revenue of $6.74 billion, which was higher than the anticipated $6.65 billion. These results highlight the company’s strong financial performance in the recent quarter. Despite the positive earnings report, Marriott’s stock experienced a slight pre-market dip, reflecting broader market trends and sector-specific challenges. Investors will be closely monitoring how Marriott navigates these challenges moving forward.

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