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Investing.com - Goldman Sachs has lowered its price target on Six Flags (NYSE:SIX) Entertainment (NYSE:FUN) to $23.00 from its previous target while maintaining a Neutral rating on the stock. The company’s shares currently trade at $24.32, having declined nearly 19% in the past week and 45% over the last six months. According to InvestingPro data, the stock’s RSI suggests oversold conditions.
The firm cited Six Flags’ withdrawal of long-term guidance that had been issued just two months ago as a key surprise, suggesting the company faces more secular and structural challenges than previously thought.
Goldman Sachs expressed concern about Six Flags’ leverage ratio now exceeding 6X and projected cash flow burn this year, limiting investors’ ability to patiently await a turnaround, particularly as the company pulls back on capital expenditures that were expected to drive attendance through new rides.
The research firm does not view the lower 2025 guidance as de-risked, noting that comparisons become significantly harder throughout the year, especially in October when attendance was up 20% last year. Goldman Sachs models 2025 EBITDA at $810 million, below the company’s guidance range of $860 million to $910 million.
While Six Flags reported a 1% year-over-year improvement in July attendance, Goldman Sachs believes this partly benefited from comparing against July 2024 when Hurricane Beryl created a 200,000 visitor headwind to legacy Cedar Fair attendance.
In other recent news, Six Flags Entertainment Corporation reported its second-quarter 2025 earnings, which showed a significant miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.99, falling short of the expected $1.03, and reported revenue of $930 million, which did not meet the forecast of $1.03 billion. This earnings miss has created uncertainty about the company’s near-term prospects. In response, Jefferies downgraded Six Flags’ stock rating from Buy to Hold, reducing its price target from $41.00 to $25.00. The downgrade was attributed to leadership uncertainty following the earnings report. These recent developments have impacted investor sentiment regarding Six Flags.
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