Vail Resorts' returning CEO is the hope for the stock, says Truist's Patrick Scholes

Summary

Patrick Scholes of Truist discusses Vail Resorts after an investor update showed visits down 20% this season and Rockies snowfall nearly 60% below the 30-year average. He remains constructive on Vail as a value stock with a buy rating, citing Epic Pass presales, geographic diversification, returning CEO Rob Katz, and asset value above the trading multiple, but sees no immediate catalyst. He prefers Choice Hotels as his top lodging pick, citing easy upcoming comps and poor year-end sentiment.

• Vail Resorts reported visits down 20% this season and Rockies snowfall nearly 60% below the 30-year average.
• Patrick Scholes says Vail's Epic Pass presales and geographic diversification help offset a poor snow season.
• Scholes remains positive on Vail as a value stock, citing Rob Katz's return and a 9x EBITDA multiple versus higher asset value.
• Scholes says Vail is in his buy ratings but sits in the middle of his rankings and lacks an immediate catalyst.
• Choice Hotels is Scholes's top lodging pick and he recently upgraded it.
• He expects easier comparisons for Choice's economy consumer segment after a very difficult prior year.
• Scholes calls Choice a great business model and says year-end sentiment on the stock was horrible.