United Parks & Resorts (PRKS) PT Raised to $74 at Stifel

Stifel analyst Steven Wieczynski raised the price target on United Parks & Resorts (NYSE: PRKS) to $74.00 (from $70.00) while maintaining a Buy rating.

The analyst commented, "PRKS has clearly turned into a show-me story (thus the related sell-off this afternoon despite positive commentary). Investors don’t believe PRKS can achieve record EBITDA this year given a tough start to 1Q25 (weather-related) and the fact Universal is opening Epic in May. With shares trading at ~6.5x next year’s EBITDA, we believe the setup couldn’t be better. Advance ticket sales, season/group sales and international bookings are all running ahead of last by a double-digit clip. On top of that, PRKS has identified $50M of cost savings that should be mostly recognized this year. Our revised 2025 EBITDA estimate of $693M seems beyond conservative to us, and it wouldn’t surprise us to see them produce EBITDA close to ~$730M. While additional competition could impact visitation/spending patterns at PRKS parks (priced into the current share price?), we believe their value proposition plus high-quality assets will keep them somewhat isolated."

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