Consumer – Gaming & Lodging: Second

Shaun KelleyBank of America
Merrill Lynch

Shaun Kelley “is one of the fast-rising young guns in gaming and lodging research,” declares one buy-side backer. The Bank of America Merrill Lynch analyst is also advancing on the roster: He lands in second place this year, up from third in 2011 and 2010 and runner-up in 2009. Kelley is bullish on Bethesda, Maryland–based Marriott International because it has a bigger share of the U.S. hotel market than its global competitors. Plus, “Marriott is returning $1 billion per year to shareholders through stock repurchases and dividends,” he says. “We continue to believe these best-of-breed traits will push Marriott shares higher in the next 12 months.” At the same time, he’s bearish on gaming-machine vendor WMS Industries of Waukegan, Illinois, which is grappling with increased competition as well as margin pressure stemming from the company’s shift to lower-priced video-lottery terminals.

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