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Investing.com - Texas Capital Securities raised its price target on Six Flags Entertainment (NYSE:FUN) to $33.00 from $28.00 on Wednesday, while maintaining a Buy rating on the stock. The new target represents significant upside potential from the current price of $26.26, though the stock has faced challenges with a 56.67% decline year-to-date.
The price target increase follows Tuesday’s confirmation that activist investor JANA Partners and an investment group have accumulated an economic interest of approximately 9% in the theme park operator. According to InvestingPro data, Six Flags currently maintains a FAIR financial health score, though it faces some challenges with short-term obligations exceeding liquid assets.
The investment group includes NFL player Travis Kelce and two consumer and technology executives, according to Texas Capital Securities.
JANA Partners published a letter near market close on Tuesday indicating its desire to work with Six Flags’ board and management team to unlock shareholder value, though it did not outline specific strategic plans.
Texas Capital Securities noted that JANA’s involvement could potentially accelerate upside opportunities the firm had previously identified in its recent initiation of coverage on Six Flags.
In other recent news, Six Flags Entertainment has seen significant developments that may interest investors. The company recently appointed Jonathan Brudnick, a partner at Sachem Head Capital, to its Board of Directors as a Class III Director, with his term set to end in 2027. This appointment comes amid leadership changes, as Executive Chairman Selim Bassoul and Lead Independent Director Daniel J. Hanrahan are set to step down by the end of 2025. Additionally, activist investor Jana Partners, alongside NFL star Travis Kelce, has acquired a 9% stake in Six Flags, advocating for improvements in marketing, customer experience, and leadership, with a potential sale being considered.
Meanwhile, Texas Capital Securities has initiated coverage on Six Flags with a Buy rating, citing the company’s strengthened position following a merger with a major regional theme park operator. UBS has also reiterated its Buy rating, maintaining a $34.00 price target, in light of a proposal from activist investor Land & Buildings to monetize Six Flags’ real estate through a REIT spin-off. Land & Buildings suggests this strategy could unlock significant value, potentially delivering up to a 78% upside based on 2026 consensus estimates. These recent developments indicate a period of strategic shifts and investor interest in Six Flags Entertainment.
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