Barclays on Wednesday raised its price target for Marriott International (NASDAQ:MAR) to $356.00, up from $320.00, while retaining an Equalweight rating on the hotel company’s shares. The revised target sits close to Marriott’s prevailing market price of $362.22, which is about 0.99% below the stock’s 52-week high of $363.54.
The price-target adjustment followed Marriott’s fourth-quarter 2025 earnings release and 2026 guidance, in which the company disclosed a higher-than-expected royalty rate from its co-branded credit card program. Barclays estimated that the royalty-rate increase would add approximately 3% to Marriott’s EBITDA - a contribution the bank characterized as larger than investors had assumed.
Operationally, Marriott reported very strong gross profit margins of 94.45% for the last twelve months, reflecting notable operating efficiency. InvestingPro data cited in coverage indicates the stock appears undervalued relative to its Fair Value assessment. InvestingPro also assigns Marriott an overall financial-health rating of "GREAT," with a score of 3.04, and offers a detailed Pro Research Report for subscribers seeking deeper analysis.
Barclays flagged a mix of performance signals from the quarter. The firm described revenue per available room - RevPAR - as "a bit soft," while net unit growth - NUG - was "a bit better." Overall, Barclays judged the quarter to be roughly in line with expectations. The bank further clarified that the announced royalty-rate bump is distinct from a pending credit card contract renegotiation; the current adjustment is not a pull-forward of anticipated renegotiation gains. Barclays expects the forthcoming renegotiation to yield a smaller fee increase than the royalty-rate change already disclosed.
Marriott’s reported fourth-quarter 2025 financials showed a slight miss on earnings per share but a revenue beat. The company posted EPS of $2.58, narrowly below the $2.61 consensus estimate, while revenue came in at $6.69 billion versus the $6.67 billion expected. Fourth-quarter EBITDA was reported at $1,402 million, topping BofA Securities’ estimate of $1,381 million and the Street estimate of $1,390 million. That EBITDA result also exceeded the top end of Marriott’s own guidance range of $1,371 million to $1,401 million.
Market reaction among sell-side analysts included other upward target moves. BofA Securities raised its price objective on Marriott to $395 from $350 and maintained a Buy rating. Stifel also lifted its target to $333 from $279 while keeping a Hold rating. Those revisions reflect a broadly positive reception to the company’s results and the incremental royalty revenue despite the EPS shortfall.
What this means for investors
- Barclays’ higher price target reflects a reassessment driven primarily by the unexpected increase in the co-branded card royalty rate, which the bank believes materially improves near-term EBITDA.
- The quarter presented mixed operational signals - softer RevPAR yet improved net unit growth - which, together with the royalty-rate development, left Barclays maintaining a neutral Equalweight stance rather than upgrading the stock.
- Other broker actions show analysts are weighing the company’s stronger-than-expected EBITDA and revenue against the modest EPS miss, leading to divergent but generally higher target revisions across firms.
Contextual data points from the quarter
- Gross profit margins for the last twelve months: 94.45%.
- Reported Q4 EPS: $2.58, compared with an expected $2.61.
- Reported Q4 revenue: $6.69 billion, compared with an expected $6.67 billion.
- Reported Q4 EBITDA: $1,402 million, above BofA’s $1,381 million estimate and the Street’s $1,390 million estimate; above Marriott’s guidance top end of $1,401 million.
Data and analyst resources
The coverage cited InvestingPro assessments and the availability of Marriott’s Pro Research Report as resources for investors seeking more detailed financial and valuation analysis. InvestingPro’s Fair Value assessment was referenced as indicating the stock may be undervalued, though detailed Fair Value figures were not provided in the commentary.
Bottom line
Barclays’ price-target increase to $356 reflects a material upgrade in projected EBITDA driven by an unexpected royalty-rate lift from Marriott’s co-branded credit card program. The bank’s decision to keep an Equalweight rating signals a balanced view - recognizing the incremental profit contribution while noting mixed operational metrics and remaining uncertainties around the upcoming credit card renegotiation.