Wells Fargo Reiterates an 'Outperform' on Cedar Fair (FUN); Adding To Priority Stock List

Wells Fargo reiterates an 'Outperform' on Cedar Fair (NYSE: FUN) price target range of $24-$26.

Wells analyst says, "Reiterate rating and adding FUN to Priority Stock List given (1) attractive total return potential of 35-45% through 2012 (23-33% appreciation plus 11.8% distribution yield--$0.70 in Q4 2011E and $1.60 in 2012E), (2) improving underlying fundamentals including incremental revenue options from new President/CEO Matt Ouimet (formerly with Disney(NYSE: DIS)/Starwood (NYSE: HOT)) that should flow largely to EBITDA, (3) defensive nature of regional theme parks offering consumers an attractive vacation value, and (4) announced accretive sale of San Francisco park that will enhance financial/distribution flexibility. We believe our outlook for low-single-digit revenue growth (excluding pending sale of Great America) in 2011/2012 remains reasonable given (1) solid Aug YTD results (2) recent management commentary and (3) uncertain degree of economic recovery."

For more ratings news on Cedar Fair click here and for the rating history of Cedar Fair click here.

Shares of Cedar Fair closed at $19.56 yesterday.

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