Vail Resorts (MTN): Whistler Acquisition Is Next EBITDA Stepup In '17 - Janney
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) in Advanced Talks to Acquire B/E Aerospace (BEAV) - WSJ
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Janney Montgomery Scott analyst, Tyler Batory, reiterated his Buy rating on Vail Resorts (NYSE: MTN) after the company reported FY4Q16 revenue of $180M and an adjusted EBITDA loss of $46M. This compared to expectations for $171M and a loss of $46M. Management guided resort EBITDA ex-Whistler of $495M at the midpoint for FY17. This represents 9.4% growth YoY and was ahead expectations for $492M. Season pass sales were up 29%, as of 9/18/16, which is a positive.
The Whistler acquisition should close in November and add $105M of incremental resort EBITDA to FY17. This compares to the ~$90M of EBITDA reported by Whistler on a TTM basis as of June.
The analyst believes the stock is undervalued given the FCF outlook and opportunities for growth. The most important driver near-term should be the pending Whistler acquisition, which will expand the MTN guest database, contribute to more pass sales, and offer diversification from both a FX and weather perspective. MTN can also benefit from growth at Park City.
No change to the price target of $170.
Shares of Vail Resorts closed at $155.80 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Wells Fargo Upgrades Vail Resorts (MTN) to Outperform
- Imperial Capital Raises Price Target on American Airlines (AAL) Following 3Q EPS Beat
- AT&T (T) Agrees to Acquire Time Warner (TWX) for More than $80 Billion - WSJ
Create E-mail Alert Related CategoriesAnalyst Comments, Earnings
Related EntitiesJanney Montgomery Scott, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!