Vail Resorts stock price tumbles on downgrades |

Vail Resorts stock price tumbles on downgrades

Daily file photoWall Street analysts say a drop in spending on vacations could hurt Vail Resorts.

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

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