SIX - Six Flags Entertainment rallies after Goldman Sachs and Jefferies fire off bullish breakdowns
Goldman Sachs upgrades Six Flags Entertainment Corporation (NYSE:SIX) to a Buy rating after having it lined up at Neutral. The firm points to positive earnings revisions on resilient ticket pricing and cost control from the theme park operator. Goldman's breakdown: "SIX's soft guidance looks conservative relative to peers, in our view and we believe it could be raised with the new CEO, whose appointment came with performance targets pegging the existing $560mn at the low end ($560-$710mn). With the stock currently trading at more than 3.0x discount to pre-pandemic average NTM EV/EBITDA of 13.3x, we expect a positive guidance update and earnings revision to drive a re-rating." SIX was also named as one of Jefferies' franchise picks for 2022 based on the strong earnings upside and cost efficiencies. Jefferies' breakdown: "We believe the market is missing the potential for rerating that should be seen for a recovering, transformational, outdoor leisure
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Six Flags Entertainment rallies after Goldman Sachs and Jefferies fire off bullish breakdowns