Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Marriott International Was Rising on Monday

By Matthew Frankel, CFP® - Feb 22, 2021 at 2:24PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The hotel operator just hit a fresh 52-week high.

What happened

The stock market was having a mixed day on Monday, with the S&P 500 index modestly lower and the Dow Jones Industrial Average slightly higher at 3 p.m. EST. However, hotel operator Marriott International (MAR 4.76%) was outperforming the market handily, with shares up by about 6% for the day and hitting a fresh 52-week high.

So what

It may seem odd that a hotel operator is reaching a new high today. After all, the hotel business is still running at a fraction of pre-pandemic business levels, and Marriott recently reported a 50% year-over-year revenue decline in 2020 and its first annual loss since the financial crisis era.

Man checking into a hotel.

Image source: Getty Images.

However, it appears that several analysts see a very bright future for Marriott in a post-pandemic world, and that's what is driving the stock higher today. BMO Capital raised Marriott's price target to $135 from $126, while Morgan Stanley increased the hotel stock's price target to $123 from $120. (Marriott's stock price is about $143.50 as of this writing.)

Wells Fargo and Evercore ISI Group seem to be the biggest reasons for the move. Wells Fargo increased its price target on Marriott to $154, while Evercore ISI now has a $158 price target and has upgraded the hotel operator to outperform.

Now what

To be sure, it's typically a good idea to take stock analyst upgrades with a big grain of salt. Nothing has changed in Marriott's business as a result of the analysts' moves. However, the fact that so many analysts are bullish on the hotel operator (at least four other analysts raised price targets last week as well) is making investors think there might be more pent-up demand for travel than originally thought.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Marriott International, Inc. Stock Quote
Marriott International, Inc.
$139.39 (4.76%) $6.33
Morgan Stanley Stock Quote
Morgan Stanley
$77.82 (5.21%) $3.85
Wells Fargo & Company Stock Quote
Wells Fargo & Company
$40.76 (7.55%) $2.86

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.