MS Ratings Update
Morgan Stanley Adjusts Diverse Stock Ratings; Upgrades Park Hotels, Downgrades Marriott Vacations
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Key Points
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Morgan Stanley raised Wyndham Hotels & Resorts' price target to 93 while maintaining an overweight rating.
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Morgan Stanley increased UnitedHealth Group's price target to 529 while keeping an overweight stance.
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Morgan Stanley lifted United Rentals' price target to 1165 with the stock still rated overweight.
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Morgan Stanley boosted United Airlines Holdings' price target to 190 while maintaining an overweight rating.
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Morgan Stanley's coverage of Travel + Leisure shows it remains overweight with a newly raised price target of 83.
Morgan Stanley made a sharp split in its hospitality coverage this week — upgrading Park Hotels & Resorts while downgrading Marriott Vacations Worldwide from overweight to underweight, according to Benzinga. The moves signal the bank sees very different futures for traditional hotel real estate and timeshare-linked vacation businesses.
At the same time, Morgan Stanley raised price targets on five other names — Wyndham Hotels, UnitedHealth Group, United Rentals, United Airlines, and Travel + Leisure — all while keeping overweight ratings intact, per Benzinga. The broad set of upgrades points to growing confidence in travel, healthcare, and industrial demand.
Park Hotels Rises as Marriott Vacations Gets Cut
Morgan Stanley upgraded Park Hotels & Resorts to overweight this week. The move suggests the bank sees value in traditional hotel real estate at current prices. Park Hotels owns full-service hotels in major U.S. markets, making it more tied to business and leisure travel than vacation ownership models.
Marriott Vacations Worldwide got the opposite treatment. Morgan Stanley cut it all the way from overweight to underweight — a rare two-notch swing. An underweight rating means analysts expect the stock to fall behind the broader market. Pebblebrook Hotel Trust also stayed at underweight, showing continued caution on some lodging names, per Benzinga.
Five Overweight Stocks Get Higher Price Targets
Morgan Stanley lifted its price target on Wyndham Hotels & Resorts to $93, up from a lower figure, while keeping its overweight rating, according to Benzinga. United Airlines Holdings got a target raise to $190. United Rentals saw the biggest jump in dollar terms — its target moved to $1,165. All three stocks remain rated overweight.
UnitedHealth Group's price target rose to $529, a sign Morgan Stanley still sees healthcare as resilient. Travel + Leisure got a new target of $83, reflecting optimism about leisure demand. An overweight rating means Morgan Stanley expects these stocks to beat the market over the next 12 months, per Benzinga.
Post-Pandemic Travel Demand Drives Morgan Stanley's Bullish Stance
The common thread across Morgan Stanley's upgrades is simple: people are still spending on travel and experiences. Hotel occupancy rates have stayed strong. Airlines are filling seats. Rental equipment demand tied to construction remains high. These trends back the bank's higher targets across hospitality, airlines, and industrials.
Healthcare fits the same story of steady demand. UnitedHealth Group serves tens of millions of Americans. A $529 price target signals the bank sees stable earnings ahead. Across all five overweight names, Morgan Stanley is betting that pricing power and solid consumer demand will drive earnings higher through the rest of 2025.
Morgan Stanley Also Upgraded a Separate Stock to Buy at $245
Beyond the hospitality and travel sector moves, Morgan Stanley also upgraded another unnamed stock to a buy rating this week. The bank raised that price target from $200 to $245 — a 22.5% increase — according to GuruFocus. That kind of jump signals strong conviction in the company's near-term growth story.
Taken together, Morgan Stanley's latest round of calls shows a bank willing to make bold bets. It is raising targets sharply across sectors while cutting names it no longer trusts. The Marriott Vacations downgrade stands out as the sharpest warning — a direct signal to investors to rethink exposure to vacation ownership stocks.
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