KeyBanc Starts Six Flags Entertainment (SIX) at Hold; Current Risk/Reward Appears Balanced

KeyBanc initiates coverage on Six Flags Entertainment (NYSE: SIX) with a Hold.

KeyBanc analyst says, "Our neutral disposition is premised upon our belief that the current risk/reward appears fairly balanced following a year of tremendous progress against strategic objectives that has resulted in a commensurately strong stock price performance (+40% year-to-date vs. +1% for the S&P 500). While we don't view meaningful downside as imminent, we believe substantial near-term upside could be limited as the market appears to be discounting some further improvement in results, which we believe could be more challenging to come by in a still sluggish consumer spending environment, coupled with the fact that the cost reduction story also appears to be winding down."

"...introducing 2011 and 2012 earnings estimates of $0.70 per share (First Call Consensus $0.49 per share) and $1.60 per share (First Call Consensus $0.32 per share), respectively, including a 4Q11 estimate of a loss of $0.71 per share vs. a loss of $1.69 per share (First Call Consensus of a loss of $0.92 per share)."

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 $37.70 yesterday.

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