stifel reiterates buy rating for pursuit attractions stock at $38 target

Published 04/06/2025, 14:48
stifel reiterates buy rating for pursuit attractions stock at $38 target

On Wednesday, Stifel analysts reaffirmed their Buy rating for Pursuit Attractions and Hospitality (NYSE: PRSU), maintaining a price target of $38. With the stock currently trading at $27.86, this implies a significant upside potential. The decision follows a series of investor meetings with PRSU’s CEO, CFO, and Investor Relations team during Stifel’s annual Cross Sector Insight Conference. According to InvestingPro data, analysts’ targets range from $38 to $41, reflecting strong bullish sentiment.

The analysts highlighted several positive indicators for Pursuit Attractions as it approaches its fiscal year 2025 peak season. Among these is the company’s strong performance in same-store yield growth, which supports their thesis of a potential pure-play re-rate. This performance is expected to showcase the company’s robust pricing power in the upcoming operating season. While the stock has fallen nearly 39% over the past six months and trades near its 52-week low of $26.66, analysts predict a return to profitability in FY2025.

Additionally, Stifel analysts noted the company’s capital deployment opportunities, which are seen to be intact with an improving synergy profile for mergers and acquisitions. Early investments in AI and technology are also beginning to enhance margins and the guest experience, according to the analysts. InvestingPro analysis shows the company maintains a moderate debt level with a debt-to-equity ratio of 0.24, providing flexibility for future investments.

The meetings reinforced Stifel’s confidence in Pursuit Attractions’ long-term capital deployment strategy. The discussions provided further insights into the company’s centralization and scaling opportunities, which are expected to contribute to its growth.

No changes were made to Stifel’s model or the $38 price target, as the analysts maintain their positive outlook on Pursuit Attractions and Hospitality’s future prospects.

In other recent news, Pursuit Attractions and Hospitality reported fourth-quarter revenue of $366.5 million, exceeding analyst expectations of $250.8 million. The company also reported an adjusted loss per share of $0.15, which was narrower than the anticipated loss of $1.40 per share. For the full year 2024, Pursuit achieved a revenue increase of 4.6% compared to the previous year, driven by higher ticket sales despite challenges like wildfires affecting Jasper National Park. Looking forward, Pursuit anticipates low-double-digit revenue growth for 2025 and projects adjusted EBITDA between $98 million and $108 million. The company recently completed the sale of its GES business for $535 million, which reduced debt and increased liquidity for growth initiatives.

In terms of analyst activity, Stifel initiated coverage of Pursuit with a Buy rating and a $38 price target, citing the company’s strong market position and potential for organic growth. Craig-Hallum also rated Pursuit as a Buy, setting a $40 price target, and highlighted the company’s transition to a higher growth and margin profile following the GES divestiture. Additionally, Pursuit announced the appointment of Mike Bosco as the new Senior Vice President and Chief Accounting Officer, effective July 1, 2025. Bosco, with extensive experience from Vail Resorts (NYSE:MTN), is expected to contribute significantly to Pursuit’s strategic growth and financial operations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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