UPDATE: Goldman Sachs Raises PT on Marriott International on Updated Estimates Following 4Q12 Results

In a report published Monday, Goldman Sachs reiterated its Neutral rating on Marriott International (NYSE: MAR), and slightly raised its price target from $41.50 to $42.00.

Goldman Sachs noted, “We are updating our estimates following 4Q12 results. Our new EPS estimates for 2013 and 2014 are $2.04 and $2.44, changed from $2.02 and $2.42. Our EBITDA 2013-2014 estimates move to $1,262mn/$1,397mn (from $1,249mn/$1,381mn earlier). With this update we introduce FY2015E EPS of $2.94and EBITDA of $1,549mn. Marriott's RevPAR growth has lagged industry levels in recent quarters and given its guarded commentary on 2013, appears unlikely to be reversed near term. While 2012 was a year of strong capital returns and another $800mn to $1bn (via buybacks and dividends) is expected in 2013, we continue to favor a more aggressive dividend policy from the company. Our EV/EBITDA and DCF-based 12-month price target is raised to $42 from $41.50 on our revised estimates.”

Marriott International closed on Friday at $39.49.

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