FBR Capital Raises Price Target on Peak Resorts (SKIS) to $6 Following 4Q

FBR Capital reiterated an Outperform rating on Peak Resorts (NASDAQ: SKIS), and raised the price target to $6.00 (from $4.00), following the company's 4Q earnings report. Management says that it has access to a $10 million bridge loan that can tide it through liquidity constraints created by a delay in the release of EB-5 funds and a decision to pre-fund $12 million of capex for the EB-5 project.

Analyst Barton Crockett commented, "We are updating our estimates and price target after Peak's F4Q16 earnings report late last week. We are encouraged that Peak says it has access to a $10 million bridge loan that can tide it through liquidity constraints created by a delay in the release of EB-5 funds and a decision to pre-fund $12 million of capex for the EB-5 project. We also make a base assumption that next winter's weather is comparable to the winter before last year (which was more subpar than great, but not the historic disaster of last winter). That doubles forecast EBITDA next year. The combination of liquidity and a normal earnings outlook allows us to take our price target up $2 to $6 and retain our Outperform rating."

For an analyst ratings summary and ratings history on Peak Resorts click here. For more ratings news on Peak Resorts click here.

Shares of Peak Resorts closed at $4.61 yesterday.

http://www.streetinsider.com/Analyst+Comments/FBR+Capital+Raises+Price+Target+on+Peak+Resorts+(SKIS)+to+$6+Following+4Q/11837229.html

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