Analyst Thomas Yeh of Morgan Stanley maintained a Hold rating on United Parks & Resorts (PRKS – Research Report), retaining the price target of $56.00.
Thomas Yeh has given his Hold rating due to a combination of factors including the competitive landscape and growth prospects of United Parks & Resorts. While the company is expected to return to moderate growth in 2025, the presence of strong competitors like Epic Universe poses a significant risk. The Orlando market presents a long-term opportunity with its high visitor numbers, yet the local share of visitation for United Parks is under pressure due to expansions by larger peers.
Additionally, while attendance is forecasted to grow, largely due to recovery from previous hurricane impacts, the ability to increase admissions pricing may be limited by promotional activities from competitors. The valuation reflects a balanced risk/reward scenario, with potential benefits from market growth being offset by competitive and weather-related challenges. Although there is a focus on capital allocation and strategic opportunities, the timing and path to realizing these benefits remain uncertain.
In another report released on February 25, J.P. Morgan also maintained a Hold rating on the stock with a $59.00 price target.