JMP Securities upgraded Vail Resorts (MTN) to strong buy from outperform.
Analyst William Marks says while he believes the company is no longer for sale, it's likely some of its hotel assets may trade hands at higher prices in coming months. While Vail Resorts may not have the near-term income upside of a hotel company focused on business travel, he believes it should still be rewarded for its quality portfolio of resorts, hotels, real estate, which he thinks makes it one of best long-term "plays" on vacation/leisure spending.
Marks sees 60 cents fiscal 2005 (July) earnings per share on $790.7 million in revenues and 76 cents fiscal 2006 earnings per share on $817.4 million in revenue. He ups his $24 target to $28.