Aaron Hecht, an analyst from JMP Securities, maintained the Buy rating on Marriott Vacations Worldwide Corporation (VAC – Research Report). The associated price target is $115.00.
Aaron Hecht has given his Buy rating due to a combination of factors, including Marriott Vacations Worldwide Corporation’s strong financial performance and strategic initiatives. The company reported better-than-expected adjusted EBITDA for the fourth quarter of 2024, surpassing both Citizens and consensus expectations. This performance was driven by higher contract sales and a slight improvement in EBITDA margins, indicating resilient customer demand despite broader economic challenges.
Additionally, the company’s valuation appears attractive, as it trades below its timeshare peer group, offering potential capital appreciation and a solid dividend yield. The expansion of EBITDA enhancement initiatives, which now include both revenue growth and cost savings, further supports the positive outlook. These initiatives are expected to yield full financial benefits by 2027, with improvements in efficiency and increased revenue from higher VPGs. Furthermore, the company’s increased dividend and positive guidance for future years contribute to the overall recommendation to buy the stock.
In another report released yesterday, Barclays also reiterated a Buy rating on the stock with a $97.00 price target.
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