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Investing.com - Stifel has reduced its price target on Marriott Vacations Worldwide (NYSE:VAC) to $101.00 from $103.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock has declined 8.64% over the past week, though it maintains a healthy 4.25% dividend yield and has raised dividends for 4 consecutive years.
The adjustment follows Marriott Vacations Worldwide’s second-quarter 2025 earnings report, which showed adjusted earnings per share of $1.96, exceeding Stifel’s estimate by $0.37 and surpassing the Street consensus by $0.19.
The vacation ownership company reported adjusted EBITDA of $203 million for the quarter, above the consensus expectation of $191.3 million.
Stifel attributed the earnings outperformance to lower product costs and a lower tax rate during the quarter.
Despite the slight reduction in price target, Stifel maintained its positive outlook on the company with its continued Buy rating.
In other recent news, Marriott Vacations Worldwide Corporation has declared a quarterly cash dividend of $0.79 per share, with stockholders of record by May 23, 2025, eligible for the payout scheduled around June 6, 2025. The company also reported the results of its annual stockholder meeting, where approximately 92.76% of eligible shares were represented, and all eight director nominees were elected with overwhelming support. Additionally, Marriott Vacations has expanded its Board of Directors by appointing Christian Alejandro Asmar, co-founder of Impactive Capital, as part of a strategy to enhance governance and operational efficiency.
Goldman Sachs has updated its assessment of Marriott Vacations, raising the price target to $55 while maintaining a Sell rating. This adjustment follows first-quarter earnings that exceeded expectations, despite a reported decline in contract sales of approximately 4% during March and April. Jefferies also revised its target for Marriott Vacations, increasing it to $74 from $60, while keeping a Hold rating. The firm acknowledges the company’s modernization efforts, although it notes challenges in the Vacation Ownership segment.
Marriott Vacations has also announced plans to establish two new ad hoc board committees focused on modernization and technology innovation strategies. The company’s cost savings have increased from a previous range of $15 million to $25 million to now $35 million, potentially including anticipated savings from 2026. These developments reflect Marriott Vacations’ ongoing efforts to enhance shareholder value and operational efficiency.
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