Mizuho Securities analyst Benjamin Chaiken has maintained their bullish stance on FUN stock, giving a Buy rating on March 14.
Benjamin Chaiken has given his Buy rating due to a combination of factors that suggest potential growth for Six Flags Entertainment Corporation. Despite challenges in the past, both legacy FUN and SIX have shown a modest increase in their topline revenue by approximately 2% in 2024. This growth, coupled with improvements in attendance under new management at legacy SIX, indicates a positive trend that could lead to higher EBITDA in the future.
Furthermore, the company has outlined plans for significant cost savings, projecting an additional $70 million by 2026. While the market has concerns about pricing cuts and operational expenditure investments, the essential elements for returning to growth remain intact. The focus on enhancing guest experience, rather than merely maximizing efficiency, is expected to contribute positively. Overall, Chaiken believes that the potential for separating cost cuts from core growth could result in a substantial increase in the company’s valuation.
In another report released on March 14, Barclays also initiated coverage with a Buy rating on the stock with a $41.00 price target.
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