Re-Rating Can Continue as Relative Value Remains in Focus; PT to $119

Research evidence excerpt

Re-Rating Can Continue as Relative Value Remains in Focus; PT to $119

Deutsche Bank

Research

Rating Company Date

Buy Marriott Vacations 30 June 2026

North America Reuters Bloomberg Rating Buy

United States VAC.N VAC US Price target (USD) 119.00 Price at 29 Jun 26 103.04

52-week range 103.04 – 45.49

Consumer

Leisure Valuation & Risks

Re-Rating Can Continue as Relative Value

Remains in Focus; PT to $119 ChrisResearchWoronkaAnalyst

+1-212-250-9376

Rising Confidence in Ability to See Accelerating FCF Generation

Tiana Malhotra As we raise our forecasts for FY26 and FY27 (details in the following section), we Research Associate

believe upward momentum in the stock can continue as VAC's multiple re-rates +1-212-250-9534

closer to its long term average (perhaps even peak, with the help of a continued

broader bull market) prior to the market's diminished confidence in strategic

execution dating back to early 2023. We think a majority of VAC's EBITDA growth

is likely to be the result of company-specific initiatives that CEO Matt Avril Key changes

implemented upon becoming Interim CEO in November and permanent CEO in Price target (USD) 92 119 29%

February. Source: Deutsche Bank

Mr. Avril made significant changes at the company upon his arrival, and we

believe those changes will become very evident in results beginning in 2H this

year (we expect 2Q to be solid, at least in line with guidance). Mr. Avril hired Mike

Flaskey as COO earlier this year and there have been subsequent new hirings at

the same time that overall headcount at the corporate office has declined. Mr.

Avril indicated while he was Interim CEO that he would rehire certain top

performers at key sales centers, and we believe that process is largely complete.