Janney Capital Reiterates Buy on Vail Resorts (MTN) as Weather Drives 2Q Results

Janney Capital reiterated a Buy rating on Vail Resorts (NYSE: MTN), and raised the price target to $147.00 (from $142.00), following the company's 2Q earnings report. MTN reported revenue of $599M and resort EBITDA of $242M. This was above expectations for $591M and $227M. Janney believes that the strong results were mostly driven by very good weather across the portfolio, in addition to the capital improvements at Park City.

Analyst Tyler Batory commented, "We continue to rate MTN a BUY. Given the FCF outlook and numerous opportunities for growth, we believe the stock is undervalued. We also think MTN is well positioned to benefit from several secular drivers within the ski industry, including the lack of new supply, which allows for pricing power. Our $147 FV (from $142) is derived using a SOTP analysis on our FY16 estimates."

For an analyst ratings summary and ratings history on Vail Resorts click here. For more ratings news on Vail Resorts click here.

Shares of Vail Resorts closed at $127.60 yesterday.

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