Morgan Stanley analyst Stephen Grambling initiated coverage of Marriott Vacations (VAC) with an Underweight rating and $87 price target The firm sees risk to shares from the company’s lower credit quality and potential inventory rebuild. Marriott Vacations’ average consumer FICO eroded since pre-COVID, leaving risk of a structurally higher loan loss provision, the analyst tells investors in a research note. Meanwhile, Morgan Stanley says the company has the lowest number of years of sales in inventory coupled with an elevated number of owners relative to units, both pointing to a greater need to build inventory versus peers.
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Read More on VAC:
- Marriott Vacations Extends Share Repurchase Program to 2025
- Marriott Vacations extends share repurchase program to December 31, 2025
- Marriott Vacations upgraded to Overweight from Equal Weight at Barclays
- Marriott Vacations price target raised to $85 from $70 at Goldman Sachs
- Marriott Vacations boosts quarterly dividend to 79c from 76c
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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