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Investing.com - Morgan Stanley has reduced its price target on Vail Resorts (NYSE:MTN) to $146.00 from $155.00 while maintaining an Equalweight rating on the stock. The stock, currently trading at $149.57, has declined nearly 18% year-to-date, though InvestingPro analysis suggests it may be slightly undervalued at current levels.
The price target adjustment follows deteriorating pass sales at the ski resort operator ahead of 2026, which has led to a more cautious outlook compared to consensus estimates and historical trend lines. This caution is reflected in InvestingPro data, showing two analysts recently revising their earnings estimates downward, though the company maintains a healthy 5.94% dividend yield.
Morgan Stanley noted that Vail Resorts management plans to address growth challenges through strategic changes to its marketing approach, with a particular focus on social media channels.
The company is also preparing an overhaul of both pass and non-pass pricing structures, with implementation expected by 2027.
These initiatives represent Vail’s efforts to reinvigorate growth amid the current slowdown in pass sales performance.
In other recent news, Vail Resorts reported fourth-quarter earnings for fiscal 2025 that did not meet analysts’ expectations. The company posted an earnings per share of -$5.08, falling short of the anticipated -$4.77, while revenue was slightly below projections at $271.3 million compared to the forecast of $272.23 million. Following these results, several analyst firms adjusted their price targets for Vail Resorts. Truist Securities lowered its price target to $237.00, citing the results as approximately in line with consensus expectations. Mizuho also reduced its target to $195.00, describing the fiscal 2026 EBITDA outlook as relatively underwhelming. Stifel cut its price target to $175.00 after the company provided Resort Adjusted EBITDA guidance that was 2% below consensus estimates. Meanwhile, UBS maintained a Neutral rating with a price target of $169.00, expressing concerns about declining visitation for the upcoming season.
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