Marriott Int'l 3Q Takeaways

JP Morgan has issued a research report on Marriott International MAR following the company's 3Q announcement. In the report, JP Morgan writes "Following today's negative investor reaction to MAR's 3Q results and 2011 commentary, we are sticking with our Overweight rating. If nothing else, investors' expectations for near-term operating leverage/flow through are reduced, which we think provides for potential EPS beats in the future. That said, we don't see estimates moving higher after today, piercing some of the near-term momentum in the stock. In fact, we are reducing our above Consensus EPS estimates for 2011 and 2012 by 3% and 4% on lower incentive management fee assumptions. In the near-term we'd expect MAR to use its considerable free cash flow (north of $600m in 2011) to aggressively repurchase stock, which should be accretive at current and even higher levels." JP Morgan maintains its Overweight rating but has raised the price target from $43 to $44. Marriott International closed yesterday at $35.67. Learn how to find the best stocks to trade each day in our 70 page E-Book and 90 minute online video for free.