Market Overview

Credit Suisse Buying In On Marriott's Timeshare Business


As summer travelers begin breaking out the maps and weighing destinations, one analyst has a recommendation: Marriott Vacations Worldwide Corp (NYSE: VAC).

The Rating

Credit Suisse analysts Cameron McKnight and Ben Combes initiated coverage with an Outperform rating and a $146 price target.

The Thesis

Marriott is Credit Suisse’s top timeshare pick partly for its ILG Inc (NASDAQ: ILG) acquisition — a move that will establish the market’s largest upper-upscale timeshare firm.

“We see significant revenue and efficiency opportunities and a potential path to a $175 price in our Blue Sky scenario,” McKnight and Combes wrote in a Friday note.

The analysts expect improved marketing initiatives, a sales ramp for new projects and Marriott’s development pipeline to drive 25-percent bottom-line compound annual growth between 2019 and 2020.

“We like the improved industry structure, return profile, and strong growth prospects,” they wrote. “We expect sales to benefit from strong consumer confidence and the shift of consumer spend to travel and leisure.”

Price Action

Marriott shares popped marginally on the upgrade and traded around $118.62 at the time of publication.

Related Links:

Morgan Stanley Analyzes The Lodging Sector's M&A Potential

The Hotel Pair Trade: Hilton vs. Marriott

Latest Ratings for VAC

Oct 2019MaintainsOverweight
Jun 2019Initiates Coverage OnNeutral
Mar 2019AssumesOutperform

View More Analyst Ratings for VAC
View the Latest Analyst Ratings

Posted-In: Ben Combes Cameron McKnightAnalyst Color Price Target Initiation Travel Analyst Ratings General


Related Articles (VAC + ILG)

View Comments and Join the Discussion!

Latest Ratings

ADBECleveland ResearchInitiates Coverage On283.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

Benzinga's Biggest Movers For The Week Of May 14, 2018

The Complete List Of The 2018 Benzinga Global Fintech Award Winners