Vail Resorts (MTN): Whistler Acquisition Is Next EBITDA Stepup In '17 - Janney

September 27, 2016 6:38 AM EDT
Get Alerts MTN Hot Sheet
Price: $167.99 +4.39%

Rating Summary:
    17 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
Trade MTN Now!
Join SI Premium – FREE

Find out which companies are about to raise their dividend well before the news hits the Street with's Dividend Insider Elite. Sign-up for a FREE trial 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.

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 $155.80 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Earnings

Related Entities

Janney Montgomery Scott, Definitive Agreement

Add Your Comment