Wells Fargo Upgrades Vail Resorts (MTN) to Outperform; Five Reasons

Wells Fargo upgraded Vail Resorts (NYSE: MTN) to Outperform with a price target range of $44-$48 from $52-55.

Wells analyst says, "We are raising our rating on Vail's shares for five reasons: (1) Vail is trading at a significantly sharper discount to its average EV/EBITDA than its lodging peers, (2) we find little-to-no relationship between U.S. GDP growth and Vail's skier visits, (3) October-to-December has historically been one of the strongest months for price appreciation in the shares, (4) the NOAA issued a La Nina advisory, a weather pattern during which Vail's Rocky Mountain resorts typically see 30%+ more snowfall, and (5) real estate closings have been in line with our expectations and additional closings after quarter-end will be noted on the 9/22 earnings call. We are lowering our fiscal 2011E-2012E EPS by $0.01 each to $0.92 and $1.30."

For more ratings news on Vail Resorts click here and for the rating history of Vail Resorts click here.

Shares of Vail Resorts closed at $37.96 yesterday.

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