Cedar Fair (FUN) PT Raised to $55 at Deutsche Bank, 'Undemanding Comps Provide Tailwind Into Peak Months'

Deutsche Bank analyst Chris Woronka raised the price target on Cedar Fair (NYSE: FUN) to $55.00 (from $52.00) while maintaining a Buy rating.

The analyst comments "We continue to like FUN's relative positioning and valuation here, ahead of the planned merger with SIX. We thought management provided adequate reasons to be cautiously optimistic about the upcoming peak season, and that's in addition to unusually poor weather patterns last summer that provide the basis for optically undemanding comps heading into the summer operating calendar. We like FUN's ability to potentially benefit from a larger number of consumers looking for valuecentric entertainment options. We are willing to extend our optimism to FUN's potential margin performance for the balance of the year also, based in large part on concrete drivers of enhanced operational efficiency outlined by management during the earnings call. Importantly, FUN also clearly indicated that it doesn't plan to materially increase cap-ex budgets from current or recent levels (which is a little different than what we heard from SIX on a standalone/pre-merger basis)."

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