11:41 AM EDT, 08/28/2024 (MT Newswires) -- Six Flags Entertainment's ( FUN ) merger with Cedar Fair represents a "meaningful catalyst," with the combined company poised for "strong" earnings before interest, taxes, depreciation and amortization growth as it hits its targeted synergies, Oppenheimer said in a Wednesday note.

The merger closed in July and surviving company Six Flags trades under the ticker "FUN."

Oppenheimer said the company continues to target $120 million in total synergies that could be realized by the end of 2025 as delays in the merger transaction hampered vendor contracts' negotiation this season. The investment firm estimated up to $50 million in run-rate synergies by the end of 2024.

The company also targets 10 million additional guests at legacy Six Flags parks and Oppenheimer said this is expected to increase operating expenses to support the higher attendance. According to Oppenheimer, consumer levels across Six Flags' portfolio appear "healthy" and its hotels business remains strong.

Oppenheimer reiterated its outperform rating and $67 price target on Six Flags Entertainment ( FUN ).

Price: 42.75, Change: -0.58, Percent Change: -1.34