Marriott downgraded to Neutral on potential weaker RevPAR at Citi

Citi analyst Smedes Rose downgraded Marriott to Neutral from Buy with a price target of $175, up from $170. The analyst sees potential for weaker RevPAR growth versus expectations depending on the trajectory of economic forecasts. In addition, with U.S. credit card balances to nominal income approaching pre-pandemic levels, and loans growing at an elevated pace, the growth for this segment could slow, Rose tells investors in a research note. The analyst is confident that Marriott can improve its net unit growth in 2023, but says a slowdown in construction starts or conversion activity below expectations would likely weigh on its valuation.