Marriott Vacations Worldwide Corporation’s Investor Day Review

Deutsche Bank analysts provided their key takeaways from Marriott Vacations Worldwide Corporation (NYSE:VAC) Investor Day.

Management highlighted a number of tools it has at its disposal to address a potentially weaker consumer, along with embedded initiatives aimed at boosting margins, but the analysts don’t think any of it can realistically offset the overwhelmingly negative sentiment that has enveloped the market around consumer discretionary stocks.

The analysts said they are especially attracted to a significant return of capital potential in a leverage-neutral manner—and the company has a demonstrated track record here. However, the analysts noted that on a shorter-term basis, and until there is greater clarity on the health of the consumer, trading could remain quite difficult. The analysts lowered their price target on the company’s shares to $188 from $202, while reiterating their buy rating.