FBR Capital Cuts Price Target as Peak Resorts (SKIS) Warns of Potential Dividend Cut
FBR Capital maintained an Outperform rating on Peak Resorts (NASDAQ: SKIS), and cut the price target to $4.00 (from $8.00), following the company's 3Q report. Disclosures from the report show that this year's ski season is about as bad as the 2011/2012 season that had been described as a once-in-a-century outlier. With the season nearly over, Peak sees FY16 revenues down 10%–12%, to $92M–$94M, and adjusted EBITDA down 15%– 18%, to $21M–$22M. Peak indicated that, unless it receives government approval for a release of funds held in escrow for the EB-5 project, the dividend could be cut.
Analyst Barton Crockett commented, "In the wake of Peak's F3Q16 earnings report, we are left with disclosures showing that this year's ski season is about as bad as a 2011/2012 that had been described as a once-in-a-century outlier. Now, because of this unexpected weather, the best assumption is that the dividend is cut, with the potential to return in later periods."
For an analyst ratings summary and ratings history on Peak Resorts. For more ratings news on Peak Resorts.
Shares of Peak Resorts closed at $3.10 yesterday.
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