Vail Resorts price target lowered to $179 from $229 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Vail Resorts to $179 from $229 and keeps an Equal Weight rating on the shares. The “key takeaway” from Vail’s Q3 report was that pass sales declined 5% in units, which was worse than the firm’s expectations for a low-single digit decline, the analyst tells investors. The other focal point from the call was the company’s commentary on the ’23/’24 season, in which it attributed weak visitation to both weather and broader industry normalization post-COVID, the analyst added. The firm is moderating assumptions and said lower visit growth expectations plus the lower pass sales outlook results in an updated FY25 EBITDA forecast of $888M, down from $935M previously forecast.