UPDATE: Goldman Sachs Upgrades Six Flags Entertainment (SIX) to Buy

Goldman Sachs analyst Stephen Grambling upgraded Six Flags Entertainment (NYSE: SIX) from Neutral to Buy with a price target of $52.00 (from $47.00).

THe analyst comments "We upgrade SIX to Buy from Neutral as we see positive earnings revisions on resilient ticket pricing (up 6% in 2023 vs. 2019), in-park spending (up 16% in 2023 vs 2019), and cost control coupled with re-rating driving 34% upside to our 12-month $52 price target. SIX’s soft guidance looks conservative relative to peers, in our view and we believe it could be raised with the new CEO, whose appointment came with performance targets pegging the existing $560mn at the low end ($560-$710mn). With the stock currently trading at more than 3.0x discount to pre-pandemic average NTM EV/EBITDA of 13.3x, we expect a positive guidance update and earnings revision to drive a re-rating. Additionally, we think given his Middleby background, the new CEO Selim Bassoul could leverage his experience to improve the quality of F&B offerings in SIX parks, leading to higher in-park spending and satisfaction scores. Finally, we believe strong leisure trends will persist through 2022, with SIX’s seasonality and outdoor experience providing downside protection from ongoing COVID variant pressures."

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 $37.38 yesterday.

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