NEW YORK (TheStreet) -- Shares of Marriott (MAR) - Get Report were advancing in pre-market trading on Monday after Morgan Stanley upgraded the stock to "overweight" from "equal weight" and Goldman Sachs initiated coverage with a "buy" rating.
Morgan Stanley increased its price target to $78 from $73 and Goldman set an $81 price target on shares of the Bethesda, MD-based hotel operator.
Morgan Stanley's upgrade reflects the firm's preference for C-Corps that have strong unit growth and synergies that translate to EBITDA growth despite the firm's lower revenue per available room (RevPAR) estimates.
Following Marriott's acquisition of Starwood Hotels & Resorts, the combined company is growing M+F rooms at a rate of 6% a year, Morgan Stanley noted. The company saw 15% future room pipeline growth year-over-year in the 2016 second quarter.
Goldman Sachs said the combined company is at the top of its stock selection framework, as its attractive returns, growth and locations aren't entirely reflected in its valuation, TheFly reports.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B-.
Marriott's strengths such as its growth in earnings per share, revenue growth and increase in net income outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: MAR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.