Six Flags Entertainment price target lowered to $48 from $52 at Stifel

Stifel lowered the firm’s price target on Six Flags Entertainment (FUN) to $48 from $52 and keeps a Buy rating on the shares. The firm says the selloff in the shares seems “totally irrational,” with way too much focus on the Q1 2025 “miss,” which is “somewhat irrelevant.” Stifel notes management is conservative in nature, and it can’t imagine them wanting to get aggressive with FY25 guidance given all the unknowns that are out in the marketplace currently. The firm views the maintained guidance as positive and point to the healthy April/season pass metrics as a reason to stay positive about how FY25 should finish. It continues to embed a moderate recession given the current cloudy macro backdrop. Stifel believes Six Flags is one of the most oversold names it covers and believes investors have now priced in an almost worst-case scenario. The firm is a buyer in front of their upcoming investor event.