On Friday, Truist Securities adjusted its price target for Marriott Vacations Worldwide (NYSE:VAC), reducing it slightly from $161.00 to $159.00. The firm retained a Buy rating on the stock despite the adjustment. The change in the price target was prompted by the company's pre-announced sales figures for the second quarter, which fell short of consensus expectations.
The analyst from Truist Securities attributed the weaker-than-anticipated sales results primarily to challenges in Hawaii. Specifically, for Marriott Vacations, the impact appears to be linked to recent post-fire conditions in Maui that may have dampened sales performance in the region. This situation has led to a revision of the firm's earnings estimates for the company.
In response to the pre-announcement, Truist Securities has recalibrated its financial projections for Marriott Vacations. The firm's decision to maintain a Buy rating indicates a continued positive outlook on the stock, despite the modest decrease in the price target.
Marriott Vacations Worldwide, a leading global vacation company, offers a portfolio of vacation ownership, exchange, rental, and resort and property management, with a focus on high-quality vacation experiences. The revised price target of $159.00 by Truist Securities reflects the latest assessment of the company's valuation in light of the updated sales information.
In other recent news, Marriott Vacations Worldwide announced the retirement of Jeanette E. Marbert, President of Exchange and Third-Party Management, set for August 31, 2024. The company also reported a 3% increase in contract sales and a 9% rise in first-time buyer tours in its first-quarter 2024 earnings call. Furthermore, Marriott Vacations revealed the opening of a new Marriott Vacation Club Resort in Waikiki and the signing of an agreement to develop a new 60-unit resort in Thailand.
In the same vein, Mizuho Securities revised its price target for Marriott Vacations to $126 while maintaining a buy rating, and Truist Securities increased its price target to $161, also with a buy rating. These adjustments were based on the company's recent performance and preliminary information for the upcoming quarters.
According to these recent developments, Marriott Vacations' full-year adjusted EBITDA is expected to remain steady at $760 million to $800 million. Analysts from both Mizuho Securities and Truist Securities have adjusted their estimates for the company's future performance, reflecting the need for Marriott Vacations to accelerate its performance in the latter half of 2024.
InvestingPro Insights
Marriott Vacations Worldwide (NYSE:VAC) has shown resilience in the face of challenges, as evidenced by Truist Securities' sustained Buy rating. For investors seeking a deeper dive into the company's financial health, InvestingPro provides real-time data that can further inform investment decisions. With a P/E ratio of 11.78, the company is positioned at a lower valuation relative to earnings over the last twelve months as of Q1 2024, compared to the industry average. Additionally, VAC's dividend yield stands at 3.44%, reflecting a commitment to returning value to shareholders, which is further bolstered by a 5.56% dividend growth during the same period.
InvestingPro Tips highlight that management's aggressive share buybacks and a history of dividend payments over 11 consecutive years signify a confident outlook on the company's financial strength and future prospects. Furthermore, with liquid assets surpassing short-term obligations, VAC demonstrates financial stability that could reassure investors.
For those considering a deeper analysis, InvestingPro offers more tips on Marriott Vacations Worldwide, which can be accessed at https://www.investing.com/pro/VAC. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription and gain access to additional tips that could provide valuable insights into your investment strategy.
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