Goldman Sachs Starts Vail Resorts (MTN) at Neutral

Goldman Sachs initiates coverage on Vail Resorts (NYSE: MTN) with a Neutral rating and a price target of $88.00.

Analyst Afua Ahwoi said, "We initiate coverage of mountain resort stocks Vail Resorts (MTN) and Whistler Blackcomb (WB) with Neutral ratings, as the sector’s structural challenges (falling new skier participation and an aging, narrow demographic) are offset by the lack of new supply and currently favorable high end consumer trends (average skier income of $100K+)."

"We also note that these companies are not only operationally seasonal (only two months matter) but the stocks tend to trade well going into the season (Oct. to Dec.), show snowinduced volatility during the season, and then tread water after the season making a longer-term investment decision especially difficult. Our relatively sober view of the sector is in stark comparison to the Street’s generally bullish views (60%+ Buy ratings for each stock). While we think these are well-managed companies, our view of a long term decline in skiers keeps us selective. We see opportunity in Intrawest Resorts (SNOW) and upgrade it to Buy (see our separate note published on 10/17/2014)," he added.

For an analyst ratings summary and ratings history on Vail Resorts click here. For more ratings news on Vail Resorts click here.

Shares of Vail Resorts closed at $82.57 yesterday.

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