A weakening macro surroundings might weigh on Marriott International within the months forward, in accordance with Barclays. Analyst Brandt Montour downgraded shares to equal weight from obese, citing the lodging inventory’s present buying and selling worth, which is now consistent with Barclays’ goal. “In 2022, we justified our OW based on MAR’s higher-end segmentation and the growth tailwinds from a recovery of group and high-end corporate transient,” he wrote in a word to shoppers Thursday. “That thesis played out well, but we see less of these tailwinds heading into 2023, as well as incrementally more price sensitivity at the high end.” Montour upped the financial institution’s worth goal on Marriott to $170 from $163, suggesting shares might acquire about 7% from Wednesday’s shut. The inventory’s down almost 4% this yr and shed about 2% earlier than the bell. Although Marriott has a stable administration staff and powerful loyalty program, Barclays views shares as pretty valued given the heightened macro dangers. Montour upgraded shares of Wyndham Hotels in the identical word, calling the inventory a well-liked lodging choose as shoppers commerce down. He upped the agency’s goal worth on shares to $88 from $80, implying that the inventory might acquire greater than 23% from Wednesday’s shut after slumping about 20% this yr. — CNBC’s Michael Bloom contributed reporting
Barclays downgrades Marriott, says stock valuation looks fair given the softening macro environment