financetom
Personal Finance
financetom
/
Personal Finance
/
Research Alert: CFRA Reiterates Buy Opinion On Shares Of Six Flags Entertainment Corp
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Research Alert: CFRA Reiterates Buy Opinion On Shares Of Six Flags Entertainment Corp
Aug 7, 2025 11:16 AM

01:50 PM EDT, 08/07/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month price target by $15 to $27, based on an 8x EV/EBITDA multiple on our 2026 estimate, in line with FUN's near-term average forward multiple. We lower our 2025 EPS estimate to -$0.08 (from $2.89) and lower 2026's to $1.26 (from $3.41). Due to the company's significant fixed cost base, EBITDA margins contracted (-980 bps Y/Y) during what should have been an excellent first summer for the newly merged entity. However, when attendance normalizes, margins should recover meaningfully. With the transition to a new CEO in 2026 and a reset of investor expectations, we believe FUN is well positioned for a rebound. The company's market-leading position provides pricing power and operational scale that smaller competitors lack. At the current levels, the shares trade at just 7x 2026 consensus estimates, pricing in prolonged weakness that we view as unlikely given the long history of the theme park sector. We reiterate our Buy rating based on FUN's defensive market position and more attractive valuation.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2025 - www.financetom.com All Rights Reserved