Six Flags Entertainment initiated with a Buy at UBS

UBS initiated coverage of Six Flags Entertainment (FUN) with a Buy rating and $49 price target The firm sees upside to the company’s synergy targets and growth profile driving a multiple re-rating of the shares. Six Flags is likely to beat Street estimates and the shares are undervalued, the analyst tells investors in a research note. UBS sees a “compelling” risk/reward profile of almost three-to-one, despite a more uncertain macroeconomic backdrop. The theme park industry remains more macro resilient as a more affordable out-of-home entertainment option, the firm contends.