UPDATE: Credit Suisse Downgrades Vail Resorts to Neutral on Lack of Catalysts

In a report published Monday, Credit Suisse analyst Joel Simkins downgraded the rating on Vail Resorts

from Outperform to Neutral, and lowered the price target from $68.00 to $64.00. In the report, Simkins noted, “We reduce our rating on MTN from Outperform to Neutral following a 44% run over the last 12 months and 13% gain YTD versus 11% and 9% changes in the S&P 500. MTN is well-run with a strong balance sheet, good FCF, high quality assets, and LT pricing power. However, shares look fairly valued at recent levels, and we see a lack of catalysts as the core season winds down. Two back-to-back seasons with lackluster snowfall yet solid visitation trends and pricing growth highlight that skiing is a lifestyle choice. Vail's core customers are affluent and skiing is an integral part of their leisure budget. Vail's continuous reinvestment back into the product (lifts, restaurants, amenities) and experience (Epic Mix) should allow it to push pricing at the window, ultimately driving advance purchase.” Vail Resorts closed on Friday at $61.16.