The drama just keeps coming in Park City, Utah where the battle between Park City Mountain Resort/Powdr and Talisker/Vail has now entered its "Wall Street" phase. After recent court rulings favored Talisker, Vail stock jumped 4.7% before pushing slightly higher. It looks like Wall Street analysts don't put much faith in Park City Mountain Resort's plans to appeal the court rulings, as the Park Record is reporting that a Credit Suisse analyst report believes that Vail Resorts has a chance to "create another Vail Mountain" by combining Canyons and PCMR.
Per the report: "The ability to combine Canyons and PCMR . . . has the potential to create a world-class destination, helping MTN [Vail's ticker symbol] to 'create' another Vail Mountain with more terrain, phenomenal accessibility (30m drive from SLC), and a terrific mountain town that has all the amenities high-end guests want."
It also notes that Canyons Resort and PCMR are located on privately held land instead of public lands, like Vail Resorts properties in Colorado.
"This is a key difference and should allow MTN to ultimately upgrade these resorts more quickly (lifts, terrain, ancillary amenities) and find partnership opportunities to develop real estate," the report says. Finally, the report advises investors to shell out some cash, putting a 12-month target price on Vail Resorts stock at $84 per share and predicting that the ski-industry giant will outperform the travel and leisure sector.
Of course, Park City Mountain Resort and its parent company, Powdr Corp., argue that their property at the base of the mountain is not for sale, and never will be. Regardless of the court ruling, PCMR believes they will still be operating the ski area next year.
So, let's dive right into some hypotheticals here. Would creating a mega-Vail-type resort that combines Park City Mountain Resort and Canyons be a good thing? Let us know in the comments, Curbediverse.
Confused about the whole mess? Head over here for all the details, from the latest court ruling to the nasty pen-pal fight between the CEOs of Powdr Corp and Vail Resorts.
· Wall Street: Canyons + PCMR terrain = 'another Vail Mountain'? [Park Record]
· Park City Resort Loses Major Ground in Talisker Lawsuit [Curbed Ski]
· The Votes Are In: Should Vail Take Over Park City Mtn Resort? [Curbed Ski]
· All PCMR-Talisker Lawsuit Coverage [Curbed Ski Archives]
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