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Vail Resorts' Near-Term Strategy Centers On Marketing, AI, And Stable Dividend: Analyst
MTNVail Resorts(MTN) Benzinga·2025-06-06 18:46

Core Viewpoint - Bank of America Securities analyst Shaun C. Kelley maintains a Neutral rating on Vail Resorts, Inc. with a price target of 175,followingthecompany′sthird−quarterperformancewhichshowedrevenueof175, following the company's third-quarter performance which showed revenue of 1.29 billion, slightly below the 1.3billionestimate,whileearningspersharewere1.3 billion estimate, while earnings per share were 10.54, exceeding the 10.12estimate[1][2].FinancialPerformance−VailResortsreportedthird−quarterrevenueof10.12 estimate [1][2]. Financial Performance - Vail Resorts reported third-quarter revenue of 1.29 billion, missing estimates of 1.3billion[1].−Thecompanyachievedearningsof1.3 billion [1]. - The company achieved earnings of 10.54 per share, surpassing estimates of 10.12pershare[1].StrategicInsights−KelleysuggeststhatthefullimpactofVailResorts′newstrategywillbeclearerinFY27ratherthanFY26,duetothetimerequiredforpricingadjustmentsandfillingtheChiefMarketingOfficerrole[2].−Thecompanyhasraisedpricesby710.12 per share [1]. Strategic Insights - Kelley suggests that the full impact of Vail Resorts' new strategy will be clearer in FY27 rather than FY26, due to the time required for pricing adjustments and filling the Chief Marketing Officer role [2]. - The company has raised prices by 7% across its pass offerings, indicating a shift towards lower-priced products among customers, although demand for day passes remains healthy [4][5]. Capital Allocation and Growth - The dividend appears stable for now, but future growth will depend on significantly higher cash flows, with no major shifts in M&A plans expected in the near term [3]. - For FY26, key drivers for EBITDA include 33 million in net resource efficiency gains, 9millionfromcyclingpastone−timeCEOtransitioncosts,9 million from cycling past one-time CEO transition costs, 7 million from favorable foreign exchange, and approximately 10millionfromimprovementsatParkCity,contributingtoanestimated10 million from improvements at Park City, contributing to an estimated 900 million EBITDA for FY26 [6]. Market Reaction - Vail Resorts shares are trading lower by 3.89% to $148.97 as of the last check [6].