Pursuit Attractions and Hospitality (NYSE:PRSU) has expanded its revolving credit facility by $100 million, extending the loan’s maturity to 2030. The company has also added its Costa Rican subsidiary as a co-borrower to support broader global ambitions.
See our latest analysis for Pursuit Attractions and Hospitality.
Pursuit Attractions and Hospitality’s share price has slipped 7% over the past month and 17% year-to-date, with a 1-year total shareholder return of -3%, as investors weigh the company’s bigger commitment to growth and global expansion against new financial obligations. Even so, with a 55% total return over five years, its long-term performance still stands out in its sector.
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With shares now trading at a sizable discount to analyst price targets, the key question is whether Pursuit Attractions and Hospitality is presenting a genuine buying opportunity, or if the market has already factored in its growth prospects.
Pursuit Attractions and Hospitality’s fair value, according to the most followed narrative, stands well above its last closing price of $34.48. This suggests meaningful upside if key growth catalysts play out as projected.
Continued expansion into iconic, high-demand travel destinations like Costa Rica and ongoing investments in premium, immersive experiences (for example, upgrades in Montana and new attractions in Jasper) are likely to capture a growing global middle class and increasing demand from millennial and Gen Z travelers seeking authentic, shareable experiences. This may support sustained revenue and earnings growth.
Want to understand what really powers this valuation? One core forecast relies on faster profit growth and a re-rating of future earnings, but the model’s assumptions do not stop there. If you want to discover how far management bets the house on premium experiences, the full narrative reveals the bold numbers behind this price target.
Result: Fair Value of $42.00 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, disruption from climate-driven events or shifting traveler preferences could challenge Pursuit’s growth plans and reshape the current valuation narrative.
Find out about the key risks to this Pursuit Attractions and Hospitality narrative.
Yet when we look at Pursuit Attractions and Hospitality’s price-to-sales ratio of 2.5x, it stands well above both the industry average of 1.7x and the peer average of 1x. That is also much higher than the 1x fair ratio where the market could settle, signaling potential downside if sentiment shifts.
