UPDATE: Bank of America Upgrades Marriot, Raises PO to $40

Bank of America raises its rating on Marriott MAR to Buy and ups its price target to $40 as the company's returns accelerate and European exposure is reduced. Bank of America says, "We had 4 concerns in our August downgrade. Heading into 2012, we think each has been addressed: 1) EPS estimates have been reset (a 3% delta w/ our ests vs. 9% in Aug.) 2) hotel RevPAR expectations have come down to 5% from 7%, 3) DC, group and Salesforce One challenges can all get less bad from here, and 4) returns and earnings growth will accelerate, supporting valuation. Our risk focus shifts from execution in the U.S. to slowdown abroad, and with minimal exposure to Europe and a best of breed business model we are upgrading to Buy." MAR closed at $32.17 per share on Monday.