Investing.com - Truist Securities lowered its price target on Vail Resorts (NYSE:MTN) to $217 from $234 while maintaining a Buy rating on the stock.
The firm reduced its target after the company reported second-quarter fiscal 2026 total reported EBITDA of $418 million, which came in 2% below Truist's estimate of $425 million and below the consensus estimate of $436 million.
Vail Resorts also issued fiscal 2026 total reported EBITDA guidance of $747 million to $783 million, with a midpoint of $765 million. The guidance midpoint came in 2.5% below Truist's preview calculation of $785 million and below the consensus estimate of $849 million.The stock currently trades at $132.58, hovering just above its 52-week low of $126.16. Despite the earnings challenges, InvestingPro analysis suggests the stock is undervalued relative to its Fair Value, offering potential upside for long-term investors.
Truist noted in an earnings preview on March 6, 2026 that the question was not whether earnings would miss consensus and guidance would be reduced but rather by how much.
The firm updated its estimates for Vail Resorts following the results and guidance.One bright spot: the company maintains a substantial dividend yield of 6.63% and has paid dividends consistently for 15 consecutive years, according to InvestingPro, which tracks 8+ additional key tips for MTN. For deeper analysis, investors can access the comprehensive Pro Research Report, available for MTN and 1,400+ other US equities.
In other recent news, Vail Resorts reported its second-quarter fiscal 2026 earnings, which fell short of expectations. The company announced an earnings per share (EPS) of $5.87, below the anticipated $6.25. Revenue also missed projections, totaling $1.08 billion compared to the expected $1.12 billion. These results were impacted by adverse weather conditions in the Rocky Mountains. Additionally, Vail Resorts updated its guidance, now projecting revenue between $747 million and $783 million, down from the previously anticipated range of $800 million to $820 million. Mizuho responded to these developments by lowering its price target for Vail Resorts from $202 to $200, though it maintained an Outperform rating. The firm attributed this adjustment to lower-than-expected visits in Colorado due to historically low snowfall. These recent developments highlight the challenges Vail Resorts is facing in the current fiscal period.
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