NEW YORK— Morgan Stanley today cut its mid-term rating for Marriott International Inc. to “buy” from “strong buy,” due to stagnant hotel construction growth, according to Reuters. In addition, analyst Michael Happel raised his 12-month price target to $46 from $40, but said the potential for appreciation on the stock no longer meets his criteria for a strong buy, the report said. “The downgrade is not a reflection on our view of the quality of the company, said Happel in a research note, “but instead reflects our belief that manager/franchisers such as Marriott tend to benefit the most during periods of accelerating hotel construction growth— a period which we are currently not in. Marriott posted a fourth-quarter loss due to restructuring charges, asset writedowns and the steep drop in travel following the Sept. 11 attacks. Shares of the company fell 84 cents, or 2 percent, to $38.53 in morning New York Stock Exchange trade. Source: Reuters
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