UPDATE: Goldman Sachs Upgrades Marriott Vacations Worldwide; Raises PT
According to a research report published this morning, Goldman Sachs has upgraded Marriott Vacations Worldwide (NYSE: VAC) from Neutral to Buy, and raised PT from $29.50 to $38.
In the report, Goldman Sachs said, "We have become more confident in VAC's story and view it as a solid cash flow producer with an inexpensive valuation. Assuming no capital allocation or acquisitions we believe the company could accumulate $700mn of cash by 2016 or even more including land sales. We think the shares are primed for outperformance as it is currently trading at 5.9X 2013 EV/EBITDA, (excluding value for land/excess inventory), has a free cash flow yield of 12%, and a fundamental story of EBITDA and margin growth."
Marriott Vacations Worldwide is currently trading at $30.90.
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