Mizuho Downgrades Marriott Vacations to Outperform, PT to $112 from $120.

Mizuho Downgrades Marriott Vacations to Outperform, PT to $112 from $120.

Marriott Vacations (NYSE: MVF) has received a positive nod from Mizuho Securities, with the firm upgrading its rating on the company's stock to "Outperform" and raising its price target to $112 from $120 [1]. This upgrade comes as Marriott Vacations continues to make progress on cost-saving measures and benefits from its strategic locations.

Cost-cutting initiatives at Marriott Vacations are reportedly gaining traction, providing the company with the opportunity to reinvest in growth initiatives. According to Mizuho, these cost savings, combined with the tailwinds from the company's strategic locations, are expected to contribute positively to Marriott Vacations' financial performance. The company's strong liquidity position, with a current ratio of 4.56, further underscores its financial stability [1].

Moreover, improvements in the timeshare industry, particularly Marriott Vacations' performance following a December trip, are expected to drive strong contract sales in the coming year. The company's presence in desirable locations such as Waikiki and Maui positions it well to capitalize on this potential [1].

The potential for contract sales is currently viewed as compelling and underappreciated by the market. As such, Mizuho's upgrade to "Outperform" reflects confidence in Marriott Vacations' ability to navigate past volatility and capitalize on its strengths in the timeshare market.

In summary, Mizuho's price target adjustment reflects optimism about Marriott Vacations' prospects, driven by its cost-saving measures, strategic locations, and improving industry conditions.

References:
[1] Mizuho Lifts Marriott Vacations Stock Target to $120. Investing.com. 2023-03-15. https://ng.investing.com/news/analyst-ratings/mizuho-lifts-marriott-vacations-stock-target-to-120-93CH-1779231