- SeaWorld Entertainment ( NYSE: SEAS ) looks on pace to beat Q2 and full-year sales and profit targets, according to Deutsche Bank.
- In a Catalyst Call note Friday, analyst Chris Woronka said there are signs of strong in-park spending in one of the company's peers and SeaWorld has a favorable customer mix.
- The stock is up 0.6% premarket.
- "Orlando hotel data continues to show accelerating momentum in visitation to the market, with RevPAR improving from +5% vs. 2019 levels at the beginning of 2Q22 to nearly +30% by the end of the quarter," Woronka said.
- "We are also aware that Disney World has strategically maintained certain attendance caps in an effort to enhance the overall customer experience, and we believe SEAS likely is benefitting from extra visitation at its nearby parks as a result (note, SEAS was not operating at full capacity in Orlando prior to Covid, so above2019 levels of attendance are logistically possible)," he added.
- "We also think increased visitation from local guests in response to population migration to Florida is likely being underappreciated by the market."
For further details see:
SeaWorld tapped as Buy Idea at Deutsche Bank