Jefferies analyst David Katz has reiterated their bullish stance on FUN stock, giving a Buy rating yesterday.
David Katz has given his Buy rating due to a combination of factors that highlight the potential for Six Flags Entertainment Corporation’s stock to appreciate. One of the primary reasons is the strategic shift in the company’s quarterly performance expectations, with a focus on enhancing results in the second quarter. This shift is supported by the rescheduling of the Boysenberry festival and operational investments in legacy parks, which are expected to boost attendance and financial performance in the upcoming quarters.
Furthermore, Katz sees value in the company’s long-term transition story, especially given its current valuation. Despite macroeconomic challenges, the management’s efforts to recover attendance at legacy assets, achieve cost synergies, and reduce leverage are viewed positively. The stock is trading at a lower EV/EBITDA multiple compared to historical averages, suggesting it is undervalued and offering significant upside potential. These factors, combined with limited tariff exposure and a focus on capital expenditures, contribute to Katz’s optimistic outlook for Six Flags Entertainment Corporation.
Katz covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, Carnival, and Rush Street Interactive. According to TipRanks, Katz has an average return of 4.9% and a 40.97% success rate on recommended stocks.
In another report released yesterday, UBS also initiated coverage with a Buy rating on the stock with a $49.00 price target.