UPDATE: JP Morgan Downgrades Marriott International to Neutral

JP Morgan has published a research report on Marriott International MAR and has downgraded the company from Overweight to Neutral based on valuation. In the report, JP Morgan wrote, "We are lowering our rating on MAR to Neutral from Overweight, primarily on valuation as the share price has approached our year-end 2012 price target of $42. We now see the shares' risk-reward as even, given its premium valuation relative to its peers and meaningful year-to-date share price outperformance. Our call today is not about lodging fundamentals or our having a changed view on the lodging cycle in the U.S; it is simply a valuation call on MAR. We (still) have a favorable view on lodging fundamentals and, at current levels, we recommend rotating out of MAR into H or HOT (as each has lagged MAR this year, particularly H) as well as WYN (which we view as more of free cash flow story than a lodging cycle story)." JP Morgan maintained its $42 price target on Marriott International, which closed Wednesday at $40.90.