Marriot, Hilton downgraded by Jeffries citing limited upside
Jeffries analysts have downgraded hospitality industry bellwether stocks Marriot (NASDAQ:MAR) and Hilton (NYSE:HLT) to Hold from Buy, noting "the upside to earnings and valuation ... is limited".
The analysts anticipate a deceleration in economic activity later in 2023 that will put pressure on the balance sheet of both companies, despite the continued strength in post-COVID recovery fundamentals.
Jeffries is holding a conservative view across the hospitality sector, placing the capital light, franchising model of Wyndham Hotels & Resorts (WH) as a more positive pick.
The current SA quant ratings for Marriot, Hilton and Wyndham are all at Hold.