Lehman raised its investment recommendation on Vail Resorts (MTN) to overweight from equal-weight.
Analyst Felicia Kantor Hendrix said she is following her significant price target increase to $45 from $28 on Oct. 6, amid positive indicators for the company's Mountain segment that point to a third consecutive year of strong growth. She adds that the company reports that rising fuel prices have not seemed to affect growth at the ski resort. She says that the Lodging segment benefited from the sale of 3 hotels for $108 million in proceeds and notes that several real estate projects could deliver nearly $300 million in pre-tax proceeds over the next two to four years. She sees $1.15 fiscal year 2006 (ending July) earnings per share, and $1.48 for fiscal year 2007.