Wells Fargo Remains Bullish on SeaWorld (SEAS) Following Q1 Results

Wells Fargo maintained an Outperform rating on SeaWorld Entertainment (NYSE: SEAS) with a price target of $40-$42. Analyst Timothy Conder noted encouraging April and May trends.

"April registered strong attendance/revenue gains despite very wet FL weather resulting in YTD (Apr) revenue down 3%. May trends are up yr/yr. SEAS remains well positioned for the remainder of 2014 given (1) ~5% admission price increases at Orlando/Tampa parks effective May 19 and further dynamic pricing opportunities, (2) easy comps against Q2 weather and Q3 (July weather), (3) benefit of Antarctica: Empire of the Penguin through H114, (4) heightened marketing efforts (50th anniversary), and (5) new Amex agreement plus international park fee potential," said Conder.

"Monetization from the new Amex partnership and any initial fees upon finalization of a contract for park developments in the Middle East are potential upside to 2014 guidance. 2014E/2015E revenue to $1.513B/$1.573B (prior $1.518B/$1.579B), adjusted EBITDA $464MM/$497MM (prior $464MM/ $499MM), including 2014 attendance/rev. per cap outlook of 1.3%/2.3%. 2014E/2015E adjusted EBITDA/share $5.28/$5.76 (prior $5.28/$5.78)," he said, adding, "Aggressively build positions given SEAS attractive risk/reward & valuation, in our view."

For an analyst ratings summary and ratings history on SeaWorld Entertainment click here. For more ratings news on SeaWorld Entertainment click here.

Shares of SeaWorld Entertainment closed at $29.34 yesterday.

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