Janney Capital Raises Price target on Six Flags Entertainment (SIX) to $60 Following Another Strong Quarter
Janney Capital reiterated a Buy rating on Six Flags Entertainment (NYSE: SIX), and raised the price target to $60.00 (from $58.00), following the company's 4Q earnings report. SIX reported 4Q15 revenue of $218M and adjusted EBITDA of $62M. This was above expectations for $193M and $50M. Janney believes that future growth will be driven by higher ticket prices, more season pass sales, increased attendance, and in-park spending. The company continues to execute on its season pass strategy and reported its active pass base was up 26% at year-end.
Analyst Tyler Batory commented, "SIX reported 4Q15 results that came in ahead of consensus expectations. We continue to believe future growth will be driven by higher ticket prices, more season pass sales, increased attendance, and in-park spending. The company also has a strong management team and benefits from operating in the regional theme park industry. We believe international expansion is a LT growth opportunity that is not fully priced into the stock. Our FV is $60 (from $58), which is 13.5x our 2016 adjusted EBITDA."
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Shares of Six Flags Entertainment closed at $52.68 yesterday.