Oppenheimer Thinks Six Flags’ Stock is Going to Recover

In a report released yesterday, Ian Zaffino from Oppenheimer maintained a Buy rating on Six Flags (SIX), with a price target of $63. The company’s shares closed yesterday at $48.79, close to its 52-week low of $47.81.

Zaffino said:

“Comparisons for the first quarter and most of 2019 are favorable. Weather was highly adverse in 2Q18 and 3Q18, and operating days should benefit from the EPR acquisition (until May 22) and calendar extensions at Fiesta Texas and Mexico. The process to replace departing CEO Jim Reid-Anderson is ongoing. We view his departure as a setback; there is also risk that new leadership changes the dividend policy. We lower 1Q19E/2019E EBITDA to ($31M)/$576M from ($22M)/$586M, owing to higher lease and operating costs at EPR.”

According to TipRanks.com, Zaffino is a 3-star analyst with an average return of 0.5% and a 49.9% success rate. Zaffino covers the Services sector, focusing on stocks such as Servicemaster Global Holdings, Wyndham Hotels & Resorts Inc, and Wyndham Destinations Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Six Flags with a $63 average price target.

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Six Flags’ market cap is currently $4.1B and has a P/E ratio of 15.12. The company has a Price to Book ratio of -6.37.

Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SIX in relation to earlier this year.

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Six Flags Entertainment Corp. engages in operating of theme parks. It operates under the brand name Six Flags, which offers state-of-the-art and traditional thrill rides, water attractions, themed areas, concerts and shows, restaurants, game venues, and retail outlets. The company was founded by Angus Wynne in 1961 and is headquartered in Grand Prairie, TX.