Analyst Shaun Kelley from Bank of America Securities maintained a Hold rating on Vail Resorts (MTN – Research Report) and keeping the price target at $200.00.
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Shaun Kelley has given his Hold rating due to a combination of factors that influence Vail Resorts’ current market standing. One significant factor is the below-average cumulative snowfall across Vail’s tracked resorts, which is down 26% compared to the long-term average. This lack of snow, particularly in key areas like Colorado and Park City, has negatively impacted visitation trends, with overall visits down 1% year-over-year. Such conditions are crucial for Vail Resorts as they directly affect the number of visitors and, consequently, the company’s revenues.
Despite these challenges, there are positive signs, such as strong visitation in the Northeast and potential for improved conditions with upcoming snow forecasts. Additionally, Vail Resorts’ valuation metrics indicate a price objective of $200, which, although higher than the current price, suggests limited immediate upside. These mixed signals—between adverse weather impacts and some positive regional trends—support the balanced view reflected in Kelley’s Hold rating.