Vail Resorts (MTN) is unlikely to be able to meet the upper end of its full-year EBITDA guidance due to labor cost headwinds, UBS said in a note Friday.
Investors will be on the look out Monday whether the company reiterates its EBITDA guidance when it reports its quarterly results. Last year, the company reiterated its EBITDA guidance in January, but guided down when Q2 was reported, given challenging weather conditions, UBS said.
The company saw favorable weather to start 2025, with snow cover acting as catalyst to more visitations to its ski resorts, UBS said.
The firm said it expects labor cost headwinds to impact the company's EBITDA by at least $20 million to $25 million during the year, making the upper end of the company's guidance of $838 million to $894 million "not as achievable."
Still, the firm said its EBITDA estimate of $870 million was within the guidance range and slightly below Street estimates of $871 million.
The firm has a neutral rating on the stock with a price target of $185.
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