VAC Stock Forecast & Price Target

Marriott Vacations Worldwide Corp has demonstrated a significant improvement in its development margins, reaching 24.7%, which represents a 1,000 basis point increase year-over-year. The recovery of the timeshare business, which had faced challenges in 2020, indicates strong demand and a resurgence in consumer interest. Additionally, favorable conditions such as lower product costs and a decreased tax rate have contributed positively to the company’s financial performance, providing a solid foundation for future growth.

Marriott Vacations Worldwide Corp experienced a notable decline in key financial metrics, with revenues from its exchange business falling by 10.0% year-over-year. Additionally, the company's total consolidated contract sales decreased by 1.0% to $445 million, alongside a 3.0% reduction in vacation product yield per guest (VPG) to $3,631. The decline in average revenue per member by 2.0% and a reduction in total active members, which fell to approximately 1.5 million, further indicate challenges in sustaining consumer engagement and revenue generation.