Marriott Seen as High-Quality Asset-Light Compounder with Limited Upside: JPMorgan

Marriott International, Inc. (NASDAQ:MAR) ranks among the best cyclical stocks to buy now. On June 23, JPMorgan began coverage of Marriott International, Inc. (NASDAQ:MAR) with a Neutral rating and a $284 price target. The bank describes Marriott as a “high-quality, asset-light compounder” with appealing higher-end chain-scale and customer exposure, indicating that it possesses a balanced risk/reward profile.

Marriott Seen as High-Quality Asset-Light Compounder with Limited Upside: JPMorgan

DoublePHOTO studio/Shutterstock.com

Marriott’s current value of 14.5x 2026E EV/EBITDA, according to JPMorgan, appropriately accounts for these favorable features, indicating limited upside potential at current levels.

The firm cites a number of reasons for Marriott’s 1.5–2x discount over its competitor Hilton since late 2023, including the fact that Marriott’s average net room growth has been lower at 5% as opposed to Hilton’s 6-7% growth.

Marriott International, Inc. (NASDAQ:MAR) is a Maryland-based multinational company that operates, franchises, and licenses lodging including hotel, residential, and timeshare properties. The company operates a portfolio of roughly 7,800 properties under 30 leading brands, spanning 138 countries.

While we acknowledge the potential of MAR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.