Ski resort operator Skistar's second-quarter report has not prompted any major revisions from the leading investment banks.
Both Nordea and Handelsbanken have reiterated their Buy recommendations with a target price of SEK 200.
Nordea noted that it is only making minor estimate revisions, as Skistar's fundamental strengths remain intact.
"We forecast continued pricing power, international demand, and margin expansion (driven by higher capacity utilization) as catalysts for EBIT growth of approximately 12 percent for 2024/25," the bank stated.
Furthermore, demand for ski trips is expected to remain robust for Skistar, supported by favorable winter conditions in Scandinavia and currency tailwinds attracting foreign visitors. A more advantageous calendar is also expected to contribute positively.
Lower interest rates are projected to gradually boost bookings from Swedish customers and, in the longer term, strengthen demand for vacation properties.
Handelsbanken is also making minor adjustments following the report and views the subsequent share price decline as a compelling buying opportunity.
"This is supported by the lower valuation of 16x EV/EBIT on 2025/26 estimates, compared to Skistar's historical ten-year average of 18x," the bank noted.
SkiStar AB is a Sweden-based company active in the leisure and recreation industry. It is primarily engaged in the management of mountain ski resorts in Hemsedal and Trysil, in Norway, as well as in Salen, Are and Vemdalen, in Sweden. The Company’s activities are divided into two business areas: Destinations and Property Development. The Destinations area is responsible for the skiing services, mediation of accommodation, ski school and ski rentals. The Property Development area operates through wholly owned subsidiaries, named Fjallinvest AB and Fjellinvest Norge AS, which manage accommodation properties for hire, own land for development and have a stake in a jointly-owned real estate entities operating at SkiStar’s destinations. Furthermore, the Company is a parent of Salens Hogfjallshotell AB, Tandadalens Fjallhotell Service AB, and Are Invest AB, among others.
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