UPDATE: Credit Suisse Starts Six Flags Entertainment (SIX) at Neutral

(updating comment)

Credit Suisse analyst Benjamin Chaiken initiates coverage on Six Flags Entertainment (NYSE: SIX) with a Neutral rating and a price target of $16.00.

The analyst comments "SIX is not the same company it once was, in our view, with management turnover and long-term profitability targets forcing the company to potentially sacrifice long-term sustainability for near-term gains. Prior to the impact of coronavirus, a mismanaged season pass program and significant reinvestment costs already hampered 2020 numbers. While the impact from coronavirus is difficult to target exactly, we forecast 2020 EBITDA of $227mm driven by a 40% attendance decline due to coronavirus closures and greater-than-expected cost rigidity in the P&L, offset by a 50% reduction in advertising spend."

For an analyst ratings summary and ratings history on Six Flags Entertainment click here. For more ratings news on Six Flags Entertainment click here.

Shares of Six Flags Entertainment closed at $22.55 yesterday.

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