BofA Securities has raised its price target on Marriott International to $395.00 from $350.00 and maintained a Buy rating on the hotel operator. The new target equates to roughly a 10% upside from the stock's current price of $357.97, though InvestingPro data indicates the shares may already be trading above their Fair Value.
The upgrade follows Marriott's fourth-quarter results that contained both upside surprises and near-miss items. Adjusted EBITDA for the period was reported at $1,402 million, topping BofA's estimate of $1,381 million and the consensus Street projection of $1,390 million. That EBITDA figure also exceeded the upper bound of Marriott's own guidance range of $1,371 million to $1,401 million.
Revenue per available room - RevPAR - rose 1.9% in the quarter, outperforming BofA's projection of 1.1% and the Street estimate of 1.3%. Management additionally reported a 35% increase in credit-card related fees, which the company attributed to stronger cardholder spending and a higher royalty rate.
BofA highlighted ongoing negotiations around Marriott's credit-card partnerships and flagged the potential for further upside once full partner renegotiations conclude later this year. The firm quantified the possible additional credit-card revenue at approximately $200 million, and incorporated that upside into its revised valuation.
The new price objective is built on roughly 30 times projected 2027 earnings per share, compared with the prior 28 times multiple. BofA pointed to a reduction in the volatility of Marriott's fee stream as the rationale for expanding the multiple.
Additional company-level results for the fourth quarter of 2025 were mixed. Marriott reported earnings per share of $2.58, slightly below the expected $2.61. Total revenue for the quarter reached $6.69 billion, marginally above the consensus forecast of $6.67 billion. Adjusted EBITDA, as noted, came in at $1,402 million, beating both Street expectations of $1,390 million and Marriott's guidance range of $1,371 million to $1,401 million.
Following the quarterly disclosure, Stifel raised its price target on Marriott to $333 from $279 but kept a Hold rating on the shares. Together, the analyst moves and the underlying results reflect investor focus on Marriott's revenue performance, fee composition and the potential lift from credit-card partnership outcomes.
Key takeaways center on the stronger-than-expected fee performance and the explicit valuation change tied to anticipated credit-card revenue and lower fee volatility. At the same time, the modest EPS shortfall and the fact that some models suggest the shares may exceed fair value are factors investors will weigh as negotiations and forward guidance evolve.