Analyst Thomas Yeh from Morgan Stanley maintained a Buy rating on Six Flags Entertainment Corporation (FUN – Research Report) and keeping the price target at $58.00.
Thomas Yeh has given his Buy rating due to a combination of factors, primarily driven by Six Flags Entertainment Corporation’s promising growth prospects. The company’s recent quarterly results and guidance for 2025 have bolstered confidence in its ability to achieve a double-digit EBITDA compound annual growth rate through 2027. This optimism is supported by strong demand indicators, which suggest that concerns about pricing power and consumer health may be overstated.
Yeh highlights the significant attendance-led growth opportunities at Six Flags, with expectations of accelerated growth at the proforma company in 2025 and beyond. The legacy Six Flags parks have already shown a notable increase in attendance and revenue, indicating potential for further growth. Additionally, the market appears to be undervaluing Six Flags’ ability to meet its new 2025 guidance, which aligns with consensus expectations. The anticipated investor day and other strategic initiatives are expected to further enhance the company’s growth trajectory, justifying the Buy rating.
In another report released yesterday, Oppenheimer also reiterated a Buy rating on the stock with a $60.00 price target.