Analyst Stephen Grambling of Morgan Stanley maintained a Hold rating on Marriott Vacations Worldwide Corporation (VAC – Research Report), retaining the price target of $57.00.
Stephen Grambling has given his Hold rating due to a combination of factors influencing Marriott Vacations Worldwide Corporation’s recent performance. The company reported a first-quarter EBITDA that surpassed expectations, largely due to better-than-anticipated cost management and improved margins. However, despite this positive aspect, the company lowered its 2025 contract sales outlook by 5% at the midpoint, indicating potential challenges ahead.
Grambling noted that while the cost-saving initiatives appear to be effective, the weaker growth in Volume per Guest (VPG) and the reduced contract sales outlook could exert pressure on the stock. The stock’s current trading multiple of approximately 9x, compared to the pre-pandemic average of around 11x, suggests that the market may have already priced in some of these concerns. As a result, the Hold rating reflects a balanced view of the company’s cost efficiencies against the backdrop of softer sales projections.
In another report released on April 22, Jefferies also maintained a Hold rating on the stock with a $60.00 price target.
Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of VAC in relation to earlier this year.