Guggenheim Trims Six Flags Price Target on Weather Headwinds, Reiterates Buy
Guggenheim lowered its price target on Six Flags Entertainment (NYSE:FUN) to $48 from $50, while maintaining a Buy rating, citing weather-related challenges that pressured Q2 performance.
The analysts noted unfavorable weather across much of the company’s park portfolio through April, May, and early June — including the key Memorial Day weekend — which likely weighed on attendance and season pass sales velocity. As a result, Guggenheim reduced its Q2 revenue forecast to $1.045 billion (from $1.072 billion) and EBITDA to $383 million (from $408 million).
While July and late Q3 weather comparisons are expected to be easier year-over-year, execution remains critical to achieving full-year EBITDA guidance. Guggenheim’s FY EBITDA projection now sits at $1.081 billion, the low end of Six Flags' $1.08B–$1.12B range.
Key focus areas for the company include enhancing guest experience, unlocking cost synergies, driving free cash flow efficiency through targeted park investments, integrating tech systems, and lowering net leverage.
| Symbol | Price | %chg |
|---|---|---|
| 4661.T | 3175 | 1.89 |
| 7832.T | 4982 | 1.49 |
| 081660.KS | 35850 | -0.28 |
| 7309.T | 16590 | 0.09 |
Cedar Fair Slahsed to Neutral at Citi
Citi analysts downgraded Cedar Fair (NYSE:FUN) to Neutral from Buy and cut their price target to $41.00 from $50.00 due to disappointing visitation trends and the threat of another miss on the attendance line in Q2.
The analysts had previously believed that regional theme parks, while facing pressure from low-to-middle-income consumers due to inflation, should see a benefit as more affluent consumers would trade down and choose less expensive destination vacations. However, while the former trend seems to have played out, there have been no offsetting trade downs, resulting in underwhelming visitation trends.
Despite liking the management team, appreciating the assets, and believing in the long-term opportunity, the analysts have chosen to go to the sidelines until expectations better align with the lackluster trends expected in late spring and early summer.
Cedar Fair Slahsed to Neutral at Citi
Citi analysts downgraded Cedar Fair (NYSE:FUN) to Neutral from Buy and cut their price target to $41.00 from $50.00 due to disappointing visitation trends and the threat of another miss on the attendance line in Q2.
The analysts had previously believed that regional theme parks, while facing pressure from low-to-middle-income consumers due to inflation, should see a benefit as more affluent consumers would trade down and choose less expensive destination vacations. However, while the former trend seems to have played out, there have been no offsetting trade downs, resulting in underwhelming visitation trends.
Despite liking the management team, appreciating the assets, and believing in the long-term opportunity, the analysts have chosen to go to the sidelines until expectations better align with the lackluster trends expected in late spring and early summer.
