Six Flags Entertainment (FUN) PT Lowered to $48 at Guggenheim

Guggenheim analyst Curry Baker lowered the price target on Six Flags Entertainment (NYSE: FUN) to $48.00 (from $50.00) while maintaining a Buy rating.

The analyst commented: "We have updated our 2Q FUN forecast to reflect weather headwinds across the company's portfolio throughout a significant portion of the quarter. Management noted weather challenges in April on the 1Q call (attendance for April was up 1% which included some favorable shifts due to Boysenberry Festival/Easter), and the weather headwinds continued into May and early June (including the important Memorial Day time-frame which likely impacted the velocity of season pass sales). Given the weather headwinds, we have lowered our 2Q revenue (now $1.045bn vs. $1.072bn prior) and EBITDA (now $383mm vs. $408mm prior). Weather outcomes in July (and 3Q overall) will be key to hitting management's EBITDA guide for the year - we would note July and end-of-September in theory have easy y/y weather comparisons. Our full-year EBITDA outlook is now $1.081bn, at the low-end of FUN's $1.08bn-$1.12bn guidance range. Key execution initiatives for this year and next remain: 1) enhancing the guest experience, 2) cost synergies to drive margin expansion, 3) disciplined park investment that maximizes FCF efficiency, 4) integrating technology stacks, and 5) reducing net leverage. PT down to $48 (from $50)."

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