Truist Securities lowers Vail Resorts stock price target on modest guidance

Published 30/09/2025, 14:12
Truist Securities lowers Vail Resorts stock price target on modest guidance

Investing.com - Truist Securities lowered its price target on Vail Resorts (NYSE:MTN) to $237.00 from $244.00 on Tuesday, while maintaining a Buy rating on the ski resort operator’s stock. The company, currently valued at $5.5 billion with a P/E ratio of 19.2, appears undervalued according to InvestingPro Fair Value analysis.

The price target reduction follows Vail’s fourth-quarter fiscal 2025 results, which Truist described as approximately in-line with analyst consensus expectations. Despite strong snowfall in Australia during the quarter, the results did not deliver the modest beat some investors may have anticipated. The company maintains a solid dividend yield of 6%, having maintained dividend payments for 15 consecutive years, according to InvestingPro data.

Vail Resorts reported a slight deceleration in pass sales trends compared to May levels, which Truist highlighted as a focus area for investors. The company also acknowledged underperformance in guest engagement among other operational issues.

Truist noted that Vail’s fiscal year 2026 guidance came in "modestly lite" compared to expectations, contributing to the price target reduction. The fourth quarter is not considered an important earnings period for the company.

The research firm characterized Vail’s acknowledgment of operational shortcomings as "refreshing," pointing out that the company has "historically been highly reluctant to own up to shortcomings" and praised its high-level outline of plans to address these issues.

In other recent news, Vail Resorts reported fourth-quarter earnings that did not meet analysts’ expectations. The company posted an earnings per share of -$5.08, falling short of the anticipated -$4.77. Revenue also missed projections slightly, totaling $271.3 million compared to the forecast of $272.23 million. Following these results, analysts have adjusted their outlooks on the company. Mizuho lowered its price target for Vail Resorts to $195.00 from $216.00, citing a fiscal 2026 EBITDA outlook that they describe as "relatively underwhelming." Similarly, Stifel reduced its price target to $175.00 from $180.00, maintaining a Buy rating despite the disappointing fourth-quarter results. Stifel noted that the fiscal year 2026 Resort Adjusted EBITDA guidance was 2% below consensus estimates. Additionally, Epic Pass sales were slightly below the company’s previous guidance, though they aligned with unofficial market expectations. These developments reflect a cautious stance by analysts on Vail Resorts’ future performance.

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