Vail Resorts (MTN) is ending strikes from disgruntled union workers at its Park City, Utah location. These works have reached a tentative agreement with the world’s largest mountain resort company that will be voted on today. The details of this agreement haven’t been revealed, but a joint statement confirms the two groups support it.
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This agreement may include increased pay for union workers in Park City. That was the crux of the strike as patrollers claimed pay didn’t match the high living expenses in the resort town. This had workers seeking a $2 increase to $23 per hour. Vail Resorts last increased wages in 2022, bumping employees from a base pay of $13 to $21 an hour. However, the union argues the living wage in Park City is $27 an hour.
What This Means for Vail Resorts
With the union strike about to end, Vail Resorts is hopeful normal operations will resume. Much of the company’s ski resort was closed during the strike, including 247 of its 350 trails and 16 of its 41 lifts. Reopening these will reduce lines and increase customer satisfaction.
However, Vail Resorts may face one problem after reaching an agreement with workers. Ending the strikes may embolden unions at other locations. That could force the company to increase wages at those facilities or suffer additional strikes.
No matter the case, investors are happy to hear the strikes are over. Shares of MTN stock are up 4.46% in pre-market trading after slipping the last couple of days.
Is MTN Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Vail Resorts is Hold based on three Buy, five Hold, and two Sell ratings over the last three months. With that comes an average price target of $199.33, a high of $247, and a low of $165. This represents a potential 12.55% upside for MTN shares.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
