Vail Resorts stock price tumbles on downgrades
VAIL, Colorado ” Vail Resorts stock price dropped Tuesday after two analysts downgraded the stock from “buy” to “neutral,” Thomson Financial, a financial news service, reported.
The stock price closed Tuesday on the New York Stock Exchange at $33.51, down $1.23. Two months ago, the stock was trading above $50.
The analysts cited “difficult domestic economic environment and softer spending trends among the ski resort’s luxury clientele,” according to a press release.
Bank of America analyst Shaun Kelley was reportedly one analyst who downgraded the company.
“Given a significant increase in pricing in recent years … we think further price increases will be more difficult to drive and will lead to lower visitation,” Kelley wrote, according to Thomson Financial.
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Joel Simkins of Macquarie Research was another analyst who downgraded the stock, according to the press release.
“Although Vail caters to a higher-end destination traveler, we are concerned that the headwind of costlier airfares could crimp some visitation from domestic customers, offset somewhat by international tourists,” Simkins wrote in a note to clients Tuesday, according to Thomson Financial.
Staff Writer Edward Stoner can be reached at 748-2929 or email@example.com.