Credit Suisse Recommends Accumulating Six Flags (SIX) on Positive Risk/Reward

Credit Suisse analyst B. Chaiken reiterated an Outperform rating and $67 price target on Six Flags Entertainment (NYSE: SIX) saying they see a buying opportunity with compelling risk/reward.

Chaiken commented, "We view the risk/reward favorably for SIX flags and encourage investors to accumulate shares in a name we are bullish on long term with -4%/+19.5% risk/reward (including a 4% dividend) over the next year. While this is not specifically a call on 2Q (late July), we feel comfortable owning the name into the print. We see 1) limited downside to FY EBITDA from strong deferred revenue increases (relative to current street expectations), 2) the potential for upside to estimates from favorable attendance mix and 3) long term upside from Virtual Reality. This note is not intended to reflect a change in expectations or sentiment, rather frame our outlook over the next 6-12 months. Our updated estimates reflect expectations from international park contracts in Vietnam."

The firm raised 2016-17 EPS estimates to $1.90/$1.41 from $1.88/$1.40 respectively.

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 $58.35 yesterday.

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