Update (9:55 a.m.): Updated with Tuesday market open information.
NEW YORK (TheStreet) -- BMO Capital increased its target price on Marriott (MAR) to $57, increased its estimates and set a "market perform" rating. The firm noted the company is buying back more shares.
The stock was flat at $53.50 shortly after the market opened on Tuesday.
Separately, TheStreet Ratings team rates MARRIOTT INTL INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MARRIOTT INTL INC (MAR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to its closing price of one year ago, MAR's share price has jumped by 30.38%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, MAR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- MARRIOTT INTL INC's earnings per share declined by 12.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MARRIOTT INTL INC increased its bottom line by earning $2.01 versus $1.72 in the prior year. This year, the market expects an improvement in earnings ($2.37 versus $2.01).
- MAR, with its decline in revenue, slightly underperformed the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 14.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for MARRIOTT INTL INC is currently extremely low, coming in at 7.39%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.69% significantly trails the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Hotels, Restaurants & Leisure industry. The net income has decreased by 16.6% when compared to the same quarter one year ago, dropping from $181.00 million to $151.00 million.
- You can view the full analysis from the report here: MAR Ratings Report