Macquarie analyst Paul Golding has maintained their neutral stance on MTN stock, giving a Hold rating yesterday.
Paul Golding has given his Hold rating due to a combination of factors impacting Vail Resorts’ recent performance and forward-looking prospects. The recent ski season witnessed a reduction in visitation rates, with significant weakness at Whistler, leading management to adjust their FY24 EBITDA expectations to the lower end of their guidance range. Additionally, lift ticket revenue growth was positive but fell short of expectations, and while there was an uptick in ski school and dining revenues, retail/rental revenue experienced a decline. This mixed financial performance, coupled with a modest downturn in early spring pass sales, suggests a cautious outlook on the company’s near-term revenue growth.
Golding’s assessment also takes into account the broader challenges faced by the industry, such as weather volatility, which has proven difficult to mitigate even with advanced snowmaking capabilities, and demographic shifts that may affect skier acquisition and retention. Despite improvements in spending per visit and the incremental revenue from season pass programs, the report indicates that Vail Resorts remains susceptible to these external pressures. The Hold rating reflects an expectation of continued uncertainty and the potential for these factors to influence the company’s performance moving forward.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $229.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MTN in relation to earlier this year.
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Vail Resorts (MTN) Company Description:
Vail Resorts, Inc. is a holding company, which engages in the operation of mountain resorts. It operates through the following segments: Mountain, Lodging, and Real Estate. The Mountain segment covers the operation of mountain resorts or ski areas, and related activities. The Lodging segment includes ownership of hotels, condominium management, Colorado resort ground transportation company, and mountain resort golf courses. The Real Estate segment holds real property at mountain resorts primarily throughout Summit and Eagle Counties in Colorado. The company was founded by Pete Seibert and Earl Eaton in March 1957 and is headquartered in Broomfield, CO.
