Six Flags Earnings Downgraded by Truist Amid Consumer Spending Worries

Truist Securities lowered its rating on Six Flags Entertainment Corporation after reviewing the theme park operator's recent earnings update and forecast. Analyst Patrick Scholes cited the company's high exposure to mid-tier and lower-end leisure travel, which continues to face challenges. Scholes also highlighted consumer spending challenges as a key factor in the rating downgrade.

Truist Securities has lowered its rating on Six Flags Entertainment Corporation (NYSE:FUN) after reviewing the theme park operator's recent earnings update and forecast. The downgrade was attributed to the company's high exposure to mid-tier and lower-end leisure travel segments, which continue to face significant challenges. Analyst Patrick Scholes cited consumer spending challenges as a key factor in the rating downgrade.

The firm's 2025 EBITDA estimate was cut to $873 million from $1.01 billion, and the adjusted EPS estimate was reduced to -$0.80 from $1.88. For 2026, Truist sees EBITDA of $984 million and EPS of $0.50, down from its prior estimate of $1.58 and the $0.85 consensus. The new price target for FUN was set at $27, down from the previous $45, based on an 8.0X multiple of the 2026 EBITDA estimate.

Shares of Six Flags (NYSE:FUN) traded 0.4% higher on Wednesday afternoon at $23.37, within the 52-week range of $21.44 to $49.77 [1].

References:
[1] https://seekingalpha.com/news/4491865-truist-slashes-earnings-expectations-for-six-flags-amid-consumer-spending-challenges