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On Tuesday, Truist Securities maintained a positive stance on Vail Resorts (NYSE:MTN) shares, reiterating a Buy rating and a $247.00 price target. The stock, currently trading at $161.97, is near its 52-week low of $151.99, having declined over 28% in the past year. The firm’s analysts highlighted the company’s performance, noting a second successive quarter of earnings surpassing consensus estimates. This achievement follows a period where Vail Resorts frequently missed earnings expectations during the season. According to InvestingPro data, the company offers an attractive dividend yield of 5.78% and has maintained dividend payments for 14 consecutive years.
The analysts observed that the full-year earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast for the resort was adjusted slightly downward, attributing the change primarily to foreign exchange (FX) headwinds. The company’s current EBITDA stands at $817.46 million. This minor revision was not entirely unforeseen, as the company had previously indicated during its first-quarter earnings that such an adjustment might occur. InvestingPro analysis reveals that 4 analysts have revised their earnings downwards for the upcoming period, though the company maintains a solid financial health score.
Despite the slight guide-down, analysts at Truist Securities regard the latest financial results as a victory. Trading at a P/E ratio of 24.91, the stock currently sits below its InvestingPro Fair Value estimate. This perspective takes into account the previous two seasons, during which core earnings guidance was reduced. Additionally, there were concerns that labor issues at Park City (NYSE:TRAK) could have prompted a further downward revision in the company’s guidance. For deeper insights into Vail Resorts’ valuation and financial health, access the comprehensive Pro Research Report available exclusively on InvestingPro.
The report from Truist Securities comes after Vail Resorts managed to navigate through the challenges posed by currency fluctuations and labor disputes without significant impact on its financial guidance. The company’s ability to outperform market expectations for two consecutive quarters has reinforced the confidence of analysts in its stock.
Vail Resorts’ stock performance and financial outlook remain a focus for investors, particularly as the company continues to manage external pressures while delivering on earnings expectations. The reiterated Buy rating and price target reflect Truist Securities’ continued endorsement of the company’s stock amidst the current market conditions.
In other recent news, Vail Resorts reported its second-quarter financial results for fiscal year 2025, showing an earnings per share (EPS) of $6.56, which exceeded the forecast of $6.30. The company’s revenue stood at $1.14 billion, aligning with market expectations. Analysts at Stifel maintained a Buy rating with a price target of $217, emphasizing a modest 2% increase in Resort Adjusted EBITDA. However, Jefferies adjusted its price target for Vail Resorts to $173, maintaining a Hold rating due to uncertainties in the company’s financial outlook and the unpredictability of weather conditions affecting skier visits.
Mizuho (NYSE:MFG) Securities also revised its target to $215 while keeping an Outperform rating, highlighting a mix of positive financial results and a slowdown in visitation. Meanwhile, BofA Securities maintained a Neutral rating with a price target of $185, noting that Vail Resorts’ financial performance provided some relief amidst broader market challenges. The company’s management reaffirmed its Resort EBITDA target for the fiscal year at $866 million, excluding foreign exchange impacts.
Despite a 2.5% decline in season-to-date ski visits, Vail Resorts saw a 4.1% increase in lift ticket revenue, indicating effective pricing strategies. Analysts have pointed out the potential long-term value in Vail Resorts’ customer database, which could enhance cross-selling and upselling opportunities. The company’s strategic positioning and pre-committed revenue from bookings are expected to mitigate risks for the remainder of the ski season.
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