Goldman Sachs Downgrades United Parks & Resorts (PRKS) to Neutral

Goldman Sachs analyst Lizzie Dove downgraded United Parks & Resorts (NYSE: PRKS) from Buy to Neutral with a price target of $53.00 (from $63.00).

The analyst comments: "We are downgrading PRKS to Neutral from Buy and lower our price target to $53 following 2Q24 results where the stock outperformed on the day driven by a much faster than expected buyback and July trends, which were on net a little better than we expected. However, we are cautious on the 2H outlook and believe achieving the guidance for record EBITDA in 2024 will prove to be a challenge. The guidance implies an acceleration from -3% EBITDA decline in 2Q to +3% in the second half, along with an acceleration back to growth in attendance and per caps, despite a negative exit rate in 2Q. As such, we expect the stock to remain range-bound given 3 key overhangs: 1) the uncertainty of achieving 2024 guidance; 2) concerns around Orlando softness noted by CMCSA and DIS spreading to PRKS and 3) the launch of the Epic Universe park in 2025 and what that means for the long-term outlook. We acknowledge that the stock is still cheap vs. history, and continued buybacks likely offer some support in the near-term, but find risk-reward more balanced here given the potential for weakening fundamentals."

For an analyst ratings summary and ratings history on United Parks & Resorts click here. For more ratings news on United Parks & Resorts click here.

Shares of United Parks & Resorts closed at $46.35 yesterday.

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