Shares of Great Wolf Resorts Inc. rebounded from a multiyear low Wednesday morning, one day after an analyst said the resort operator's second-quarter guidance is conservative.
After dropping to a multiyear low of $4.43 early in the session, Great Wolf Shares jumped 24 cents, or 5.1 percent, to $4.95 in morning trading. The stock has lost more than 65 percent from its one-year high of $15.85 in July 2007.
In a note to investors on Tuesday, Stifel Nicolaus analyst Steven Wieczynski said he recently hosted investor meetings with Great Wolf's management. According to Wieczynski, management said they have not experienced a significant drop-off in visitation, despite the economic slowdown.
The analyst said he believes the company's second-quarter forecast is conservative.
"While booking patterns have held up so far, investors have to remember that Great Wolf's booking window is short at only three weeks so a downturn can come unexpectedly," Wieczynski noted.
Wieczynski, who has a "Hold" rating on the stock, said he expects the shares to remain under pressure until the economy shows signs of recovery.
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