Pursuit Attractions and Hospitality stock remains a top pick at Stifel

Investing.com - Stifel reiterated its Buy rating and $38.00 price target on Pursuit Attractions and Hospitality (NYSE:PRSU), currently trading at $29.25, following extensive meetings with the company’s management team. According to InvestingPro data, analysts’ targets range from $38 to $41, suggesting significant upside potential.

The investment firm highlighted multiple demand drivers pointing to a strong calendar year 2025 peak season for the hospitality and attractions operator, which derives 48% of its fiscal year 2024 revenue from its Banff-Jasper collection. InvestingPro analysis shows the company is expected to achieve 11% revenue growth in FY2025, with analysts forecasting a return to profitability this year.

Stifel noted that the breadth of capital deployment options available to Pursuit is wider than previously appreciated, with particularly compelling opportunities at the recently acquired Jasper SkyTram.

The firm’s analysis also emphasized Pursuit’s strong bench of local leadership supporting management, with thoughtfully implemented culture and systems to navigate the transition to a scaled enterprise operating model.

Pursuit Attractions and Hospitality remains a top pick for Stifel, with the firm making no changes to its financial model or $38 price target following the management meetings and tour of the company’s Canadian operations.

In other recent news, Pursuit Attractions and Hospitality has made a significant move by acquiring Tabacón Thermal Resort & Spa in Costa Rica, marking its expansion into a new international market. This acquisition adds a luxurious eco-friendly resort to Pursuit’s portfolio, enhancing its global presence. Stifel analysts have reiterated their Buy rating for Pursuit, maintaining a price target of $38, highlighting the company’s strong performance and growth potential. Craig-Hallum also initiated coverage with a Buy rating and set a $40 price target, emphasizing Pursuit’s restructuring efforts and its focus on high-growth opportunities.

Pursuit’s recent sale of its non-core GES business has allowed the company to reduce debt and concentrate on its core attractions and hospitality operations. The company is anticipating a notable increase in revenue growth for 2025, supported by the recovery of tourism in Jasper National Park and recent acquisitions. In leadership news, Pursuit has appointed Mike Bosco as the new Senior Vice President and Chief Accounting Officer, succeeding Leslie Striedel. Bosco’s extensive experience in accounting and financial reporting is expected to support Pursuit’s strategic growth initiatives.

Analysts have noted Pursuit’s solid balance sheet and its potential for transformative mergers and acquisitions, thanks to its strong market position and strategic investments. The company’s focus on enhancing its existing assets and acquiring new ones is seen as a key driver for future growth. Pursuit’s recent developments and strategic appointments underscore its commitment to expanding its global footprint and enhancing shareholder value.

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