Citigroup Sees Marriott International Benefiting From U.S. Growth, Hikes Price Target

Michael Bilerman of Citigroup on Monday maintained a Buy rating on Marriott International Inc MAR with a price target raised to $88 from a previous $76. As U.S. growth in the hotel space will outpace international markets.

Marriott International will benefit from a 4 percent to 6 percent gross unit growth, contributing to an EBITDA growth of 13 percent to 15 percent through 2016 which will drive 20 percent-plus earnings per share growth, according to Bilerman.

The analyst also adds that Marriott International will benefit from improving convention trends and industry wide supply/demand dynamics, especially among the upscale and upper midscale segments.

Bilerman notes that shares of Marriott International are expended to be range-bound in early 2015, but will appreciate over time as investors recognize shares deserve to trade higher, reflecting 2016 valuations.