Six Flags Price Target Cut to $36 by Mizuho

Mizuho lowered its price target on Six Flags (FUN) to $36 from $43 and maintained an Outperform rating. The firm attributes the stock's 40% decline to perceived soft attendance, but does not view Six Flags as "broken." Mizuho believes weather is a larger factor in attendance than previously thought.

Mizuho Financial Group has revised its price target on Six Flags Entertainment (FUN) to $36 from $43, while maintaining an Outperform rating on the stock. The decision comes as the company has seen a significant 40% decline in its stock price year-to-date, compared to a 7% gain in the S&P 500 [1].

The downgrade is primarily attributed to concerns over soft attendance figures, supported by weak third-party foot-traffic data. Mizuho believes that weather conditions have played a larger role in the decline than previously thought, suggesting that the business is not fundamentally broken [2].

Other analysts have also adjusted their price targets due to similar concerns. UBS has lowered its target to $40, citing adverse weather conditions during critical periods. Guggenheim has reduced its target to $48, projecting full-year EBITDA of $1.081 billion, at the low end of management’s guidance range [1].

Despite these challenges, Oppenheimer has maintained its Outperform rating with a $60 price target, noting that the majority of annual attendance remains to be realized. UBS has also maintained a Buy rating with a $49 price target, albeit with more conservative projections for EBITDA growth and margins [1].

S&P Global Ratings has revised Six Flags' credit outlook to negative, highlighting weaker-than-expected operating performance and delayed debt reduction. The agency expects the company’s adjusted leverage to remain above its downgrade threshold through at least 2025 [1].

These developments underscore the ongoing operational and financial challenges Six Flags faces amid adverse weather conditions and strategic execution. Investors should closely monitor the company’s performance and any updates on its attendance figures and financial outlook.

References:
[1] https://www.investing.com/news/analyst-ratings/mizuho-lowers-six-flags-stock-price-target-on-attendance-concerns-93CH-4141600
[2] https://www.tipranks.com/news/the-fly/six-flags-price-target-lowered-to-36-from-43-at-mizuho-thefly