Western U.S. Snow Shortage Raises Water Supply Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Ski Industry Impacted: The unusually warm and dry winter has significantly reduced snowfall in major ski areas like Park City and Vail, sidelining skiing and snowmobiling activities, which adversely affects tourism revenue and related industries.
- Water Supply Crisis: Snow cover across the West is near record lows, leading to insufficient snowpack that directly impacts water supply for cities, agriculture, and reservoirs, complicating the long-standing drought issues in the Colorado River basin.
- Agricultural Risks: The low snowpack has resulted in irrigation shortages, raising concerns among farmers about winter wheat crops suffering from cold snaps without protective snow cover, potentially leading to costly replanting.
- Increased Cloud Seeding Investment: States and ski operators are investing more in cloud seeding to enhance snowfall, although experts note that results are uneven; the snowpack situation in Colorado is particularly critical, affecting water supplies for approximately 40 million people in the U.S. and Mexico.
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Analyst Views on MTN
Wall Street analysts forecast MTN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MTN is 169.54 USD with a low forecast of 145.00 USD and a high forecast of 234.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
3 Buy
5 Hold
1 Sell
Hold
Current: 131.470
Low
145.00
Averages
169.54
High
234.00
Current: 131.470
Low
145.00
Averages
169.54
High
234.00
About MTN
Vail Resorts, Inc. is a network of destination and close-to-home ski resorts in the world including Vail Mountain, Breckenridge, Park City Mountain, Whistler Blackcomb, Stowe, and 32 additional resorts across North America; Andermatt-Sedrun and Crans-Montana Mountain Resort in Switzerland; and Perisher, Hotham, and Falls Creek in Australia - all available on the Company's Epic Pass. The Company's segments include Mountain, Lodging and Real Estate. It also provides ancillary services, primarily including ski school, dining and retail/rental operations. The Company owns and/or manages a collection of elegant hotels under the RockResorts brand, a portfolio of vacation rentals, condominiums and branded hotels located in close proximity to its mountain destinations, as well as the Grand Teton Lodge Company in Jackson Hole, Wyo. The Company operates more than 250 retail and rental locations across North America. It owns, develops and sells real estate in and around its resort communities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Western U.S. Snow Shortage Raises Water Supply Concerns
- Ski Industry Impacted: The unusually warm and dry winter has significantly reduced snowfall in major ski areas like Park City and Vail, sidelining skiing and snowmobiling activities, which adversely affects tourism revenue and related industries.
- Water Supply Crisis: Snow cover across the West is near record lows, leading to insufficient snowpack that directly impacts water supply for cities, agriculture, and reservoirs, complicating the long-standing drought issues in the Colorado River basin.
- Agricultural Risks: The low snowpack has resulted in irrigation shortages, raising concerns among farmers about winter wheat crops suffering from cold snaps without protective snow cover, potentially leading to costly replanting.
- Increased Cloud Seeding Investment: States and ski operators are investing more in cloud seeding to enhance snowfall, although experts note that results are uneven; the snowpack situation in Colorado is particularly critical, affecting water supplies for approximately 40 million people in the U.S. and Mexico.
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U.S. Policy Affects Canadian Tourist Trends
- Visitor Decline Trend: U.S. ski resorts report a sharp drop in Canadian visitors, particularly in the New England region, despite excellent snowfall this winter, indicating a direct impact of policy on tourism.
- Canadian Tourist Reaction: Inntopia data reveals that Canadian bookings tend to drop significantly within 48 hours following any controversial geopolitical statement by President Trump, reflecting their dissatisfaction and resistance to U.S. policies.
- Sense of Betrayal: Tom Foley, Inntopia's director of business intelligence, states that Canadians feel betrayed by a longtime friend, exacerbating their resistance to U.S. ski resorts and affecting tourism stability.
- Impact on Las Vegas: There is also a notable decline in Canadian tourists visiting Las Vegas compared to last year, further demonstrating the negative impact of U.S. policies on tourism across other popular destinations.
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