SIX - Six Flags rallies after surprise CEO switch

Jefferies says the appointment by Six Flags Entertainment (SIX +7.6%) of a new CEO is a surprise move and that it is not clear whether there will be any strategic or operating shift resulting from the change. Selim Bassoul, formerly the non-executive chairman of the board, wasappointed CEO and President of Six Flags in a move that was effective immediately. Analyst David Katz and team say the best guess is that the CEO change is not performance-based, but could be for a wide range of reasons." Our view has been that the business required improved execution to fulfill its optimal earnings power, which we believe was demonstrated in the most recent quarter," notes Katz. The early reaction from investors is good with shares of SIX jumping back over $44 earlier in the session. See the advanced chart on SIX.

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Six Flags rallies after surprise CEO switch