{"id":1347,"date":"2025-06-23T16:42:48","date_gmt":"2025-06-23T16:42:48","guid":{"rendered":"https:\/\/retrotradingreport.com\/index.php\/2025\/06\/23\/jp-morgan-initiates-coverage-on-marriott-sees-9-upside\/"},"modified":"2025-06-23T16:42:48","modified_gmt":"2025-06-23T16:42:48","slug":"jp-morgan-initiates-coverage-on-marriott-sees-9-upside","status":"publish","type":"post","link":"https:\/\/retrotradingreport.com\/index.php\/2025\/06\/23\/jp-morgan-initiates-coverage-on-marriott-sees-9-upside\/","title":{"rendered":"JP Morgan initiates coverage on Marriott, sees 9% upside"},"content":{"rendered":"
<\/div>\n

JP Morgan initiated coverage on Marriott International. The brokerage sees a 9% upside on the hotel company<\/a>.<\/p>\n

Balanced risk profile<\/h2>\n

The brokerage gave a target price of $284 with a neutral rating. The target price indicates a 9% upside from Friday\u2019s closing price. <\/p>\n

JPMorgan has assessed Marriott\u2019s investment profile as balanced, citing the hotel chain\u2019s status as a \u201chigh-quality, asset-light compounder\u201d with strong exposure to the higher-end market and customer segments. <\/p>\n

While these are considered favorable traits, the investment bank views Marriott\u2019s current valuation\u2014trading at 14.5 times estimated 2026 EV\/EBITDA\u2014as already reflecting these strengths. <\/p>\n

As a result, it sees limited upside at current levels.<\/p>\n

The firm also pointed to Marriott\u2019s valuation discount of 1.5 to 2 times compared to peer Hilton since late 2023. <\/p>\n

This gap is attributed to several factors, notably Marriott\u2019s slower average net room growth, estimated at around 5%, versus Hilton\u2019s 6\u20137%.<\/p>\n

Additional contributors to the discount include Marriott\u2019s relatively more asset-heavy structure, with owned EBITDA accounting for approximately 9% of total EBITDA, compared to Hilton\u2019s 5%. <\/p>\n

JPMorgan also noted that Marriott\u2019s fee growth has shown some deviation from the typical RevPAR\/net room growth correlation, and the company has slightly greater exposure to incentive management fees\u201415% of total fees versus Hilton\u2019s 9%.<\/p>\n

Marriott\u2019s Q1 results<\/h2>\n

In May, the hotel major reported a quarterly earnings of $2.32 per share, compared to $2.13 per share a year ago.<\/p>\n

The company posted $6.26 billion in revenue for the quarter ended March 2025 compared to $5.98 billion in the previous year. <\/p>\n

Marriott\u2019s global RevPAR rose by 4.1%. This included a 3.3% increase in the U.S. and Canada, while international markets saw a stronger growth of 5.9%.<\/p>\n

During the quarter, Marriott added approximately 12,200 net rooms, representing a 4.6% increase compared to the end of the first quarter of 2024. <\/p>\n

By quarter\u2019s end, the company\u2019s global development pipeline included around 3,800 properties and over 587,000 rooms, reflecting a 7.4% year-over-year increase.<\/p>\n

After the results, Marriott had declared a quarterly cash dividend of 67 cents per share.<\/p>\n

Marriott reported a total of 244,000 rooms currently under construction, including those undergoing conversion, which has shifted the composition of its overall development pipeline. <\/p>\n

CEO Anthony Capuano noted a growing trend of consumers delaying hotel bookings, contributing to uncertainty around future reservations.<\/p>\n

“The strong momentum in our development activity continued, with record first quarter signings of over 34,000 rooms, of which two-thirds were in international markets. Conversions remained a key driver of growth, representing around a third of our room signings and openings”, Capuano said. <\/p>\n

Nonetheless, demand from both leisure and business travelers remains steady, with value-consciousness becoming more pronounced, especially among lower-income customers.<\/p>\n

Mariott stock was down 0.26% during the press time. The benchmark S&P 500 index was up 0.50%<\/a>. <\/p>\n

According to TipRanks, out of the 16 analysts rating the stock, 10 gave a hold rating and 6 gave a buy rating. <\/p>\n

The consensus target price is $280.19, indicating a more than 8% upside. <\/p>\n

Marriott’s stock has fallen by 5% in the year so far. <\/p>\n

The post JP Morgan initiates coverage on Marriott, sees 9% upside<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

JP Morgan initiated coverage on Marriott International. The brokerage sees a 9% upside on the hotel company.Balanced risk profileThe brokerage gave a target price of $284 with a neutral rating. The target price indicates a 9% upside from Friday\u2019s closing price. JPMorgan has assessed Marriott\u2019s investment profile as balanced, citing the hotel chain\u2019s status as a…<\/p>\n","protected":false},"author":1,"featured_media":1348,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/comments?post=1347"}],"version-history":[{"count":0,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/posts\/1347\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media\/1348"}],"wp:attachment":[{"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/media?parent=1347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/categories?post=1347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/retrotradingreport.com\/index.php\/wp-json\/wp\/v2\/tags?post=1347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}