B.Riley Monetary analyst Eric Wold reiterated a Purchase score on Six Flags (SIX – Analysis Report) yesterday and set a value goal of $31.00.
Eric Wold has given his Purchase score because of a mixture of things that recommend a promising future for Six Flags Leisure Company. Regardless of a difficult quarter, Wold notes that the corporate’s monetary efficiency exceeded his expectations, particularly when it comes to income and adjusted EBITDA. This outperformance is very notable contemplating the primary quarter is often the least vital when it comes to contributions to annual outcomes. Moreover, the resilience of lively passholder numbers and in-park spending signifies a sturdy demand for Six Flags’ choices, in addition to the potential for elevated visitor spending within the latter half of 2024 and into 2025. These components, mixed with the synergistic potential of the upcoming merger with Cedar Honest (FUN), reinforce Wold’s optimistic outlook and help his Purchase suggestion and $31 value goal.
Additional underpinning the Purchase score is the noticed attendance figures, which surpassed Wold’s revised projections. Regardless of some hostile climate impacts and the shift within the Easter vacation, attendance remained robust. The rise in per capita spending inside the parks highlights a pattern of customers allocating extra of their budgets to theme park experiences, a constructive signal for future income progress. Furthermore, the professional forma lively cross base, adjusted for the discontinuation of sure cross merchandise, really confirmed a rise, indicating a wholesome demand trajectory. The anticipated completion of the FUN/SIX merger within the first half of 2024, which is anticipated to generate further income and value efficiencies, provides one other layer of potential worth creation for shareholders, justifying the Purchase score.
In one other report launched on Could 8, Stifel Nicolaus additionally maintained a Purchase score on the inventory with a $31.00 value goal.
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Six Flags (SIX) Firm Description:
Six Flags Leisure Corp. engages in working of theme parks. It operates beneath the model identify Six Flags, which presents state-of-the-art and conventional thrill rides, water sights, themed areas, concert events and exhibits, eating places, recreation venues, and shops. The corporate was based by Angus Wynne in 1961 and is headquartered in Grand Prairie, TX.
