Analysts raise Vail share price targets
September 26, 2012
VAIL, Colorado – Vail Resorts analysts liked what they heard during the company’s fiscal 2012 earnings report Tuesday, prompting several to raise the company’s share price targets.The potential seen by JMP Securities analyst William Marks is in future summer income – an expectation stemming from the company’s Epic Discovery plans for expanded summer recreation at its resorts revealed in July. Marks raised the share price target from $57 to $63.Marks wrote in a Wednesday note to investors that the future summer income “is worth at least an additional $4-$5 per share.”Keefe Bruyette & Woods Inc. increased its price target on shares of Vail Resorts to $62, reiterating its “outperform” rating, according to Forbes. And, Bank of America Merrill Lynch increased its price target on Vail Resorts to $65 from $57.Vail Resorts reported better than expected revenue in the fourth quarter of fiscal 2012, and Resort EBITDA (earnings before interest, tax, depreciation and amortization) was $205 million for the 2012 fiscal year, slightly above what the company expected. The company issued guidance for the 2013 fiscal year at $260 million to $270 million, causing JMP Securities to raise its guidance from $250 million to $265 million.”We are also modeling 2014 for the first time, with 8 percent EBITDA growth to $285 million, including a slight benefit ($5 million) from summer amenities; if the stock trades up to 9 times our 2014 estimate, shares would rise to $67.”Assistant Managing Editor Lauren Glendenning can be reached at 970-748-2983 or email@example.com.