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

September 27, 2016 6:38 AM EDT
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Price: $167.94 +0.62%

Rating Summary:
    17 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 17 | New: 10
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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.



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