On Thursday, Stifel, a monetary providers agency, adjusted its outlook on Six Flags Leisure (NYSE:), reducing the inventory worth goal from the earlier $32.00 to $31.00, whereas nonetheless recommending the inventory as a Purchase.
The revision comes amid expectations that the corporate’s first-quarter adjusted EBITDA will probably fall brief of the present consensus forecast. The anticipated underperformance is attributed primarily to weather-related components, with Stifel’s revised first-quarter estimate aiming to supply a extra correct prediction.
Regardless of the anticipated shortfall, Stifel means that the market has already factored in a major miss in Six Flags’ buying and selling ranges. The analyst believes that the current dip within the firm’s inventory worth has created a good threat/reward state of affairs as traders anticipate Six Flags’ forthcoming monetary outcomes and the completion of its merger with Cedar Truthful (NYSE:NYSE:).
Stifel has additionally adjusted its estimates for Six Flags for the years 2024 to 2026 to be roughly 2.5% beneath the consensus. This conservative stance takes into consideration the challenges confronted throughout the first quarter, resembling weather-related disruptions and elevated labor prices. The agency emphasizes, nonetheless, that if Six Flags can ship better-than-expected core metrics, there’s potential for the inventory worth to climb from its present place.
Within the view of Stifel, the sturdy free money stream (FCF) era that Six Flags is anticipated to take care of will present help for the corporate’s shares, significantly within the low to mid-$20 vary. The monetary providers agency stays optimistic concerning the inventory’s prospects, regardless of the lowered worth goal and the conservative revisions to the corporate’s monetary forecasts.
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InvestingPro Insights
As Six Flags Leisure (NYSE:SIX) navigates by way of its first-quarter challenges, real-time information from InvestingPro supplies a broader monetary context for traders. With a market capitalization of roughly $2.02 billion and a forward-looking P/E ratio of 32.43, the corporate is buying and selling at the next earnings a number of, which could be a sign of investor confidence in future progress.
Analysts from InvestingPro have additionally highlighted the corporate’s income progress over the past twelve months at 4.98%, indicating a gradual improve within the firm’s top-line efficiency.
InvestingPro Suggestions counsel that Six Flags is anticipated to develop its internet revenue this 12 months, which aligns with the corporate’s technique to beat short-term obstacles. Moreover, the corporate’s inventory worth has proven volatility, with a 1-month worth whole return of -8.01%, which can current alternatives for traders with a tolerance for threat.
It’s value noting that Six Flags has been worthwhile over the past twelve months, which can bolster investor confidence regardless of the absence of dividend funds to shareholders.
For these seeking to delve deeper into Six Flags’ monetary metrics and achieve extra insights, InvestingPro presents a spread of suggestions and a good worth estimate. Presently, there are 7 extra InvestingPro Suggestions accessible for Six Flags, which will be accessed by way of their platform. Use coupon code PRONEWS24 to get a further 10% off a yearly or biyearly Professional and Professional+ subscription, offering a complete toolkit for making knowledgeable funding selections.
This text was generated with the help of AI and reviewed by an editor. For extra data see our T&C.
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