Cedar Fair (NYSE:) Stock Resumes Coverage with Buy Rating and $62 Price Target After Six Flags Merger
On Tuesday, Truist Securities resumed coverage on Cedar Fair (NYSE:) stock, now part of the merged entity with Six Flags (NYSE:) Entertainment Corporation, with a Buy rating and a price target of $62.00. The merger has created a larger amusement park company under the Six Flags name, with the analyst highlighting the potential of the combined company's pro-forma profit and loss statement, including over $1.2 billion in adjusted EBITDA.
The new price target is based on a 9.5x estimated 2025 EBITDA multiple, indicating a potential upside of more than 20% to Cedar Fair's current share price. The merger has positioned the combined company for strong growth in the amusement park sector, with favorable financial metrics supporting the positive outlook.
Recent developments following the merger include leadership changes, robust net revenues, and announcements regarding note holders and special dividends. Analyst firm Oppenheimer has adjusted its price target for Cedar Fair shares to $67, reflecting optimism about the legacy Six Flags assets under Cedar Fair's management.
Other firms like B.Riley, Deutsche Bank, Citi, Truist Securities, and Stifel have maintained Buy ratings on Cedar Fair's stock, signaling confidence in the company's strategic positioning and expected financial benefits from the merger. The evolving landscape of the amusement park industry is highlighted by these recent developments.
InvestingPro Insights:
According to InvestingPro data, Cedar Fair has a market capitalization of $2.89 billion and is trading at an earnings multiple of 22.7, reflecting anticipation of growth. Analysts predict an increase in net income and sales growth in the current year. Tips from InvestingPro suggest that while Cedar Fair is trading at a high revenue valuation multiple, it has shown strong returns over the last three months.
For those interested in Cedar Fair's financials and future outlook, InvestingPro offers additional tips and metrics. Readers can use the coupon code PRONEWS24 for up to 10% off a yearly Pro or Pro+ subscription to access further insights that could inform investment decisions.
This content provides a comprehensive overview of the Cedar Fair stock following the merger with Six Flags Entertainment Corporation, highlighting key financial metrics, analyst ratings, and insights from InvestingPro. It aims to help readers understand the potential impact of these developments on their finances and investment decisions.