Source: Tony Dante
Morgan Stanley Predicts a Downturn for NYSE:MTN
Recently, Morgan Stanley offered a new price target for Vail Resorts, Inc., a leading mountain resort operator trading on the New York Stock Exchange under the ticker symbol MTN. Megan Alexander, a representative from Morgan Stanley, on June 6, 2025, set a price target of $146 for MTN. This target was set when Vail Resorts’ stock was trading at $155.42, indicating an anticipated price difference of nearly -6.06%.
The new target suggests that Morgan Stanley is expecting a potential decline in MTN’s stock price, despite Vail Resorts’ recent strong earnings performance. This projection provides investors with a potential warning sign; if the price target is accurate, the stock’s current price may not be sustainable.
Vail Resorts’ Q3 2025 Earnings
Vail Resorts is a global mountain resort operator, best known for managing premier ski destinations. Competing with other major players like Aspen Skiing Company and Alterra Mountain Company, the company offers a variety of services, such as skiing, lodging, and other mountain-related activities.
In its third-quarter fiscal 2025 earnings report, Vail Resorts exceeded expectations with an earnings per share (EPS) of $10.54, up from $9.54 the previous year. However, revenues fell short due to a 7% decline in visitation and a 4.8% drop in lodging revenues.
Resilience Amid Challenges
Despite these revenue challenges, Vail Resorts showcased the resilience of its business model. Mountain revenues increased, and season pass revenues also saw a rise of 2% due to a 7% price hike for the 2025-2026 season. This increase in season pass revenues demonstrates the company’s ability to drive revenue growth even in challenging circumstances.
CEO Rob Katz highlighted the stabilizing effect of the company’s season pass program. Despite the earnings beat, Vail Resorts’ stock fell by 1.3% in after-hours trading, indicating investor concerns over the revenue shortfall and visitation decline.
Current Stock Status of MTN
As of now, MTN’s stock is priced at $149.47, a decrease of 3.51% or $5.44. Today, the stock has traded between a low of $147.53 and a high of $155.25. In the past year, MTN’s stock price has swung between a high of $199.45 and a low of $129.85.
With a market capitalization of approximately $5.58 billion, Vail Resorts is a significant player in the market. Today, a trading volume of 1,014,166 shares were exchanged on the NYSE, underscoring the company’s relevance in the market.
Wrapping Up
While the stock price target set by Morgan Stanley may create some uncertainty for investors, it’s important to remember that price targets are based on projections and are not always indicative of a company’s actual performance. Vail Resorts’ strong EPS and resilience in the face of revenue challenges speak to the company’s strength.
The projected downturn in the stock price, if realized, could present a potential buying opportunity for investors who believe in the long-term growth potential of Vail Resorts. As with all investments, potential investors should conduct their research and consider their risk tolerance before making any decisions.