Shares of Marriott (MAR) surged 5.24% in pre-market trading on Monday, following a significant upgrade from Jefferies. The investment bank raised its rating on the hotel giant from "hold" to "buy" and substantially increased its price target from $226 to $303.
Jefferies analysts expressed confidence in Marriott's positioning, stating that the company's business model strength is well-suited to grow despite the current uncertain business climate. They believe that peak multiples are appropriate for Marriott, as its shares currently trade in the mid-range.
The upgrade comes at a time when the hospitality industry is navigating post-pandemic recovery and adapting to changing travel trends. Marriott's strong brand portfolio and global presence appear to have impressed analysts, who see potential for continued growth and market share gains in the sector.
This positive outlook from Jefferies aligns with the broader sentiment on Wall Street. According to FactSet, Marriott currently has an average rating of "overweight" among analysts, with a mean price target of $279.14. The new price target from Jefferies represents a significant premium to this average, suggesting a particularly bullish stance on the company's prospects.
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