Vail (MTN): Barclays’ Top Pick In Resort Category

Vail Resorts (NYSE: MTN) looks set to move smoothly into the ski season, based on season pass sales and airline booking data. Barclays Capital reports that pass sales have increased by 9% in sales dollars and the season pass revenue is expected to form more than a 34% of lift ticket revenue this year. Vail’s forward booking figures look less than robust but that could also be due to skiers waiting for better deals.

Despite lowering EBITDA estimates for the coming quarters, Barclays has maintained the price target at $43 and the rating is Overweight. Vail has virtually no principal maturities till 2014 and has not done any share repurchases in the quarter. The company expects its net income for 2010 to range between $25 billion and $35 billion. Based on this information and estimates from the company’s conference call, Barclays continues to rate Vail as its top pick in the sector.