Marriott upgraded to Outperform from Market Perform at Bernstein

Bernstein upgraded Marriott to Outperform from Market Perform with a price target of $262, up from $247. The firm says the Q2 reporting season has created opportunities in the global lodging sector. Weakness is most evident in China, U.S. and leisure travel, and yet stocks most exposed to those have held up the best, “likely a mistaken view” on online travel agencies and U.S. mainstream hotels being the sectors offering defensive protection, the analyst tells investors in a research note. Bernstein would prefer hotels over the online travel agencies post the Q2 reports, saying business travel is providing more certain sales momentum. The firm upgrades Marriott and Whitbread to Outperform “as the clearest disconnects.” Marriott has opened up a record discount to Hilton despite identical guidance and in the next 12 months the company should sees material progress on tech and midscale, contends Bernstein.