What happened
Storied hotelier Marriott International (MAR -1.01%) had an up day on the stock market to kick off the trading week. The company's share price improved by nearly 1% thanks in no small part to an analyst's price-target hike. That rise was more or less in line with the S&P 500 index's increase on the day.
So what
The hiking party was none other than Wells Fargo (WFC -0.91%), one of this country's "Big Four" banks, in the person of analyst Jeffrey Donnelly. He added $10 per share to his price target on Marriott shares; he now believes they are worth $222 apiece. He is maintaining his overweight (read:buy) recommendation on the stock.
The reasoning behind Donnelly's move wasn't immediately apparent. It did come less than a week after Marriott released its latest set of quarterly results, notching solid beats on both the top and bottom lines.
Not only that, the company managed to grow its revenue at a double-digit rate, with an improvement of 14% year over year (to nearly $6.08 billion). Headline net income also saw a rise, advancing 7% to $726 million. It also kept its shareholders happy by maintaining its dividend, declaring that its next quarterly payout would match its predecessor at $0.52 per share.
Now what
Times are good for the travel and tourism industry just now. Demand for vacations and related services (like hotel rooms) is high, with a global economy that continues to motor ahead and vast numbers of people eager to travel after the shutdowns of the COVID-19 pandemic. As long as that trend continues, Marriott and its hospitality peers should continue to benefit.
