Six Flags Entertainment Corp.

SIX

Market cap $2.7B

The park's fate was revealed after a recent investors' meeting.

Initiate BUY on Six Flags — the market has overreacted to temporary attendance and cost issues, underestimating recovery potential post-Cedar Fair merger. FUN's scalable business model, passholder growth, and targeted park investments position it for a robust attendance and revenue rebound by 2028. Aggressive cost optimization and merger synergies will drive EBITDA margin recovery, with management targeting 40% margin by 2028.

Six Flags Entertainment Corporation's merger with Cedar Fair made it the largest regional amusement park operator, but shares have dropped due to high debt and weak fundamentals. Seasonality and macro headwinds like inflation and weather have hurt visitation and cash flow, with negative free cash flow post-merger and rising debt levels. Despite scale, Six Flags trades at a fair value relative to peers, with no clear bargain at current prices; EV/EBITDA suggests a price target near $28-$30.

Six Flags America in Bowie, Maryland is closing this year after its owner determined it was "not a strategic fit with the company's long-term growth plan."

The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Six Flags Announces Nomination of Four New Independent Directors.

J.P. Morgan analyst Matthew R. Boss reiterated an Underweight rating on the shares of Six Flags Entertainment Corp FUN with a price forecast of $46.00.

Six Flags Entertainment (FUN -2.15%), a national amusement park company, disclosed its fourth-quarter 2024 earnings on Feb. 27, 2025, demonstrating growth but also missing crucial financial forecasts. A significant merger with Cedar Fair completed last year contributed to increased attendance and a sharp rise in revenue to $687 million from $371 million in the previous year.

CHARLOTTE, N.C.--(BUSINESS WIRE)--SIX FLAGS ENTERTAINMENT CORPORATION REPORTS 2024 FOURTH QUARTER RESULTS; PROVIDES ADJUSTED EBITDA GUIDANCE FOR 2025.

Last year was a mixed bag for the country's leading theme and amusement park operators. Shares of Six Flags Entertainment (FUN -0.99%), Walt Disney (DIS -0.33%), and SeaWorld parent United Parks (PRKS -0.36%) moved higher in 2024, but none of them beat the market.