RCL

Vail Resorts Hits 52-Week High on Perisher Ski Resort Buyout - Analyst Blog

Shares of Vail Resorts Inc.MTN hit a new 52-week high of $111.52 during the trading session on Jul 13. We believe that the recent acquisition of the company's first international mountain resort in Australia boosted investors' confidence in the stock. Since then share price has increased more than 1.5%. The closing price of this mountain resorts operator was $110.90, reflecting a year-to-date return of more than 24%. The trading volume in the session was 0.2 million shares.

The Broomfield, CO-based company acquired Perisher Ski Resort in New South Wales, Australia on Jun 30. Perisher's profitable assets include the resort areas known as Perisher Valley, Smiggin Holes, Blue Cow and Guthega, along with ski school, lodging, food and beverage, retail/rental and transportation operations. These are expected to further strengthen Vail Resorts' portfolio.

Additionally, according to Reuters, Australia ranks among the top 10 wealthiest countries in terms of per capita. It is now regarded as a small but important market for global ski resorts that mostly target international visitors who stay longer and spend more than locals. The fact that Perisher is the largest and most popular ski resort in the country offering easy access to most of the major cities like Sydney, Melbourne, Adelaide, Canberra and Brisbane, should boost revenues. Further, cash flows from Perisher are expected to boost off-season earnings.

Vail Resorts currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector are SeaWorld Entertainment, Inc. SEAS , Royal Caribbean Cruises Ltd. RCL and Carnival Corporation CCL . All these stocks carry a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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