Vail Resorts strike to erode any year-end momentum, says Barclays

Barclays says any momentum Vail Resorts (MTN) had heading into this year’s festive season amid supportive weather will “likely sustain some level of erosion” from the ongoing strikes at Park City. In addition to poor snowfall, a well-publicized strike of Park City Ski Patrol personnel over the holidays forced the resort to open just 17% of its terrain, and negative social media activity has increased, citing extraordinarily long lift times, the analyst tells investors in a research note. Barclays points out that lift tickets sales were then suspended on December 30 at Park City. The firm estimates that Park City accounts for 6%-8% of Vail’s annual EBITDA. While the company has appeared to replenish some of its ski patrol force with industry vets and other personnel from other mountains, the limited terrain and suspension of lift tickets on a key holiday weekend day collectively raise the likelihood of some level of financial impact to Q2 operations, adds Barclays. More important is the outcome of the negotiations, and whether or not it will lead to another across-the-board wage lift to Vail’s workforce, the firm says. It keeps an Underweight rating on Vail Resorts with a $165 price target