Balanced View on United Parks & Resorts: Hold Rating Amid Attendance Growth and Spending Decline

In a report released today, Thomas Yeh from Morgan Stanley maintained a Hold rating on United Parks & Resorts (PRKS – Research Report), with a price target of $52.00.

Thomas Yeh’s rating is based on a combination of factors that present a balanced view of United Parks & Resorts’ current market position. The company has shown a healthy increase in attendance growth, with a year-to-date rise of 3% on an adjusted basis. However, this positive trend is counterbalanced by a decline in per guest spending, which fell by approximately 2% year-over-year in the first quarter of 2025. This decline in spending includes a notable decrease in admissions revenue per capita, which dropped by 4% year-over-year, partly due to the timing of higher-value operating days shifting into April.
Despite the undemanding valuation of the stock at 7 times EBITDA, Thomas Yeh notes that a re-rating would require stronger market confidence in accelerating revenue growth. The macroeconomic and competitive uncertainties further complicate the pricing power of the company, raising questions about future revenue growth. Additionally, while cost discipline remains solid, the potential risk to the 2025 EBITDA guidance persists if revenue growth does not pick up. Therefore, the Hold rating reflects a cautious stance amid these mixed signals in the company’s financial outlook.

In another report released today, Barclays also maintained a Hold rating on the stock with a $50.00 price target.

Based on the recent corporate insider activity of 86 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PRKS in relation to earlier this year.