In a report released today, Ian Zaffino from Oppenheimer maintained a Buy rating on Peak Resorts (NASDAQ: SKIS), with a price target of $7. The company’s shares opened today at $5.10.
Zaffino observed:
“Consistent with management’s intentions to drive growth and augment the long-term value of the company announced that it has entered into a definitive agreement to acquire privately owned Snow Time, Inc. for $76M. The transaction represents a purchase multiple of ~6.8x (LTM EBITDA of $11.1M) and is expected to close by the start of the 2018/19 ski season (mid-November). With three resorts across Pennsylvania, Snow Time will dramatically grow the company’s Northeast operations and extend Peak’s reach into the Baltimore/Washington, D.C. audience. We raise our 2019/20E EBITDA to $38.4M/$41M from $27.4M/$30M, respectively, to reflect the transaction. Maintain Outperform.”
According to TipRanks.com, Zaffino is a 4-star analyst with an average return of 4.3% and a 58.4% success rate. Zaffino covers the Services sector, focusing on stocks such as Servicemaster Global Holdings, Wyndham Destinations Inc, and CDK Global.
Currently, the analyst consensus on Peak Resorts is a Moderate Buy with an average price target of $6.50, which is a 27.5% upside from current levels. In a report issued on September 11, B.Riley FBR also assigned a Buy rating to the stock with a $6 price target.
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The company has a one-year high of $5.78 and a one-year low of $4.10. Currently, Peak Resorts has an average volume of 22.38K.
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Peak Resorts, Inc. engages in resort operations. It offers activities, services and amenities including skiing, snowboarding, terrain parks, tubing, dining, lodging, equipment rentals and sales, ski and snowboard instruction, and mountain biking. The company was founded on September 24, 1997 and is headquartered in Wildwood, MO.
