Peak Resorts Inc SKIS 27% is at the top of the Macquarie rating hill after news broke that its EB-5 program has been approved. Macquarie analyst Matthew Brooks says the resulting release of EB-5 investment money will likely fix any liquidity issues and gave the company the double-bump to Outperform from Underperform.
EB-5 Money Released From Escrow
The EB-5 program is designed to attract foreign investment by offering immigrants who invest the opportunity to become a permanent U.S. resident. The company can now access $12 million of $52 million in EB-5 investments held in escrow until now.
Sky-High Growth Projections
Macquarie expects better weather will lead to a slightly cooler than average Northeast this year, resulting in a 50 percent rise in skier visits and a 34 percent rise in sales.
Analyst Sees 100 Percent Upside
After the recent addition of a popular new 7-mountain pass and the possibility of new acquisitions, Brooks believes there is the possibility for an 85 percent jump in EBITDA for Peak Resorts in 2017. Brooks thinks the stock could double from its Wednesday closing price of $3.37.
Along with the double upgrade, the analyst raised his price target to $6.90 from $4.30.
Peak Resorts traded at $4.30, up 27 percent.