Zacks Investment Research upgraded shares of Marriott International Inc. (MAR) from NEUTRAL to OUTPERFORM on June 14, 2012, with a target price of $44.00.
Marriot's first quarter 2012 earnings were slightly above the Zacks Consensus Estimate by $0.01. Going forward, the company's strong pipeline, significant international exposure, solid balance sheet, aggressive share buyback strategy, lower operating cost structure and increased market share, augur well for its earnings. The company recently hiked its quarterly dividend by 30%. Moreover, spin-out of the timeshare business is promising, as Marriott is able to concentrate more on its core hotel management and franchise business. Additionally, considering the increased global demand, modest supply growth, accelerating group business and strong pricing environment, we expect the top line to improve further. Marriott's deal of managing Gaylord also remains strategically sound. Hence, we reiterate our Outperform stance on the stock.
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