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Investing.com - Goldman Sachs lowered its price target on United Parks & Resorts (NYSE:PRKS) to $44.00 from its previous target while maintaining a Neutral rating on the stock.
The firm cited a larger-than-expected EBITDA miss, with earnings declining 16% year-over-year, raising concerns about both secular and structural issues with the company’s assets and execution capabilities. The company’s current EBITDA stands at $576.05 million, with a basic EPS of $3.29.
While United Parks & Resorts attributed some performance issues to adverse weather and calendar shifts, Goldman Sachs believes deeper problems may exist, including increased competition and challenging macroeconomic conditions.
Goldman Sachs noted this marks the fourth consecutive quarter where United Parks & Resorts failed to achieve its proposed cost efficiencies, a trend the firm expects to continue given the business is already operating with lean costs and higher margins than most competitors in the parks sector.
Despite these challenges, Goldman Sachs indicated the current valuation appears to reflect many of these difficulties, leading the firm to lower its estimates across the board with 2026 EBITDA projected at $613 million. The stock currently trades at a P/E ratio of 11.27 and EV/EBITDA of 7.25. For deeper insights into PRKS’s valuation and more ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, United Parks & Resorts Inc. reported its third-quarter 2025 earnings, which fell short of analysts’ expectations. The company announced an earnings per share (EPS) of $1.61, significantly below the anticipated $2.26, reflecting a 28.76% negative surprise. Additionally, the company reported revenue of $511.9 million, missing the projected $540.48 million by 5.29%. These results highlight a challenging quarter for United Parks & Resorts, as the company navigates its financial performance.
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