Analyst Shaun Kelley of Bank of America Securities reiterated a Hold rating on Vail Resorts, reducing the price target to $165.00.
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Shaun Kelley has given his Hold rating due to a combination of factors influencing Vail Resorts’ financial outlook. The company’s recent financial results showed revenue and Resort EBITDA slightly below expectations, with Epic pass units declining by 3% and a modest increase in dollars. Despite these challenges, the management’s strategic focus on increasing lift ticket revenue and modernizing marketing efforts is seen as a positive step, although it may take time to materialize given the seasonal nature of the business.
Furthermore, Vail Resorts’ guidance for FY26 Resort EBITDA indicates a range that suggests limited core EBITDA growth, compounded by expected declines in visitation and operational cost inflation. While there are potential opportunities in enhancing non-pass visitation and adjusting pass pricing strategies in the future, these initiatives are still in the early stages. Consequently, Shaun Kelley maintains a Neutral stance, adjusting the price objective to $165, reflecting a cautious outlook amid slower growth and market conditions.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a $169.00 price target.