Credit Suisse Lifts PT of Vail Resorts (MTN) to $140 Following Seasong-to-Date Operating Update

Credit Suisse lifts its price target on Outperform-rated Vail Resorts, Inc. (NYSE: MTN) from $135 to $140 following strong preliminary season-to-date revenue numbers. The firm noted that StD lift revenue growth of 19.4 percent and skier visits of 11.1 percent compared with its expectations of 7 and 4 pecent growth, respectively.

Analyst Joel Simkins commented: While +11.1% skier visits exceeded our expectations and sets the tone for a strong 3Q16, we want investors to be cognizant that some of the benefit may have been driven by favorable early season conditions (particularly in the Tahoe market) potentially pulling some visitation forward. To this point, we are cautiously optimistic that MTN will deliver strong 3Q16 visitation growth, as poor weather on the east coast could drive incremental skier visits out west, offsetting the shift. Further, we remind investors that natural pricing pressure should occur in 3Q16 given results at lower yielding locations are picking up (i.e. strength in the Tahoe market), relative to higher ticket assets (e.g., Colorado), as well as growth in the season pass. To this point, any lack of apparent pressure should be viewed as incrementally robust.

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

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