Goldman Sachs On Theme Park Stocks: A Ride Worth Taking?
Portfolio Pulse from AJ Fabino
Goldman Sachs initiates coverage on theme park stocks Cedar Fair (FUN), SeaWorld Entertainment (SEAS), and Six Flags Entertainment (SIX) amid post-COVID demand and growth in admissions and in-park spending. Analyst Lizzie Dove gives buy ratings to FUN and SEAS, and a sell rating to SIX.
May 31, 2023 | 6:20 pm
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NEGATIVE IMPACT
Goldman Sachs initiates coverage on Six Flags Entertainment with a sell rating and a $26 price target, citing concerns about per-cap growth in 2023 and the ongoing investment necessary for advertising and new attractions.
Goldman Sachs' sell rating and $26 price target for Six Flags Entertainment is based on concerns about per-cap growth in 2023 and the ongoing investment necessary for advertising and new attractions. These factors may negatively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Goldman Sachs initiates coverage on Cedar Fair with a buy rating and a $50 price target, citing a +5.0% EBITDA CAGR through 2026, well-invested park portfolio, stable management, and high-repeat customer base.
Goldman Sachs' buy rating and $50 price target for Cedar Fair is based on the company's strong EBITDA growth, well-invested park portfolio, stable management, and high-repeat customer base. These factors contribute to the company's pricing power and potential for growth, making it a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Goldman Sachs initiates coverage on SeaWorld Entertainment with a buy rating and a $75 price target, citing high exposure to the Orlando market, mobile app usage, new park investments, cost-cutting initiatives, and growth opportunities.
Goldman Sachs' buy rating and $75 price target for SeaWorld Entertainment is based on the company's high exposure to the Orlando market, mobile app usage, new park investments, cost-cutting initiatives, and growth opportunities from international licensing and domestic resort potential. These factors contribute to the company's pricing power and potential for growth, making it a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100