EU and US could reach trade deal this weekend - Reuters
On Wednesday, Stifel analysts revised their price target for Marriott International (NASDAQ: NASDAQ:MAR) shares, reducing it to $240 from the previous target of $295. The firm has decided to maintain its Hold rating on the stock. The adjustment comes as a response to current market trends and broader economic uncertainty, with the stock currently trading at $220.62. According to InvestingPro data, six analysts have recently revised their earnings estimates downward for the upcoming period.
Stifel’s analyst Simon Yarmak provided insights into the rationale behind the revised target, citing a need to adjust expectations for the company’s future earnings. The firm has modified its 2025 earnings per share (EPS) estimate to $10.06, a slight decrease from the prior estimate of $10.21. Similarly, the 2026 EPS forecast has been adjusted to $11.43 from the previously projected $11.56. Despite these adjustments, Marriott maintains impressive gross profit margins of 81.87% and trades at a P/E ratio of 26.64.
The revised estimates reflect a more cautious outlook for the second quarter of 2025, acknowledging weaker current trends. Additionally, projections for the second half of 2025 and the year 2026 have been modestly lowered. This conservative approach by Stifel is attributed to the prevailing macroeconomic uncertainty that could potentially impact Marriott’s performance.
Marriott International, a leading player in the global hospitality industry, is facing a challenging economic environment that has necessitated a reevaluation of its financial forecasts. Stifel’s update indicates a careful analysis of the company’s near-term prospects amid these uncertain times.
Investors and market watchers will be closely monitoring Marriott’s performance in the coming quarters to see how the company navigates the economic landscape and whether it aligns with Stifel’s revised expectations.
In other recent news, Sonder Holdings Inc. completed the sale of approximately $18 million in Series A preferred stock as part of its financial restructuring efforts. This move is expected to help the company reduce costs by about $50 million annually, aligning with its integration into Marriott International’s digital channels. This integration aims to place Sonder properties on Marriott’s platforms, potentially expanding its reach to Marriott’s vast sales network. Meanwhile, Marriott International has been active with several strategic initiatives, including issuing $2 billion in new debt. The proceeds from this debt issuance are earmarked for general corporate purposes, such as working capital and potential acquisitions.
Goldman Sachs recently downgraded Marriott’s stock from Buy to Neutral, citing macroeconomic volatility and consumer pressures as factors that could impact the hospitality sector. The firm also lowered the price target for Marriott shares to $245. UBS, on the other hand, maintained a Neutral rating with a price target of $301, noting Marriott’s ongoing digital transformation efforts. In a separate development, Marriott expanded its hotel portfolio by launching the City Express brand in the U.S. midscale market, starting with a property in Duluth, Georgia. This expansion is part of Marriott’s strategy to grow its presence in the midscale segment, with plans to open additional locations throughout the year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.