Jefferies downgrades Six Flags stock rating to Hold on leadership uncertainty

Published 07/08/2025, 09:16
Jefferies downgrades Six Flags stock rating to Hold on leadership uncertainty

Investing.com - Jefferies downgraded Six Flags (NYSE:SIX) Entertainment (NYSE:FUN) from Buy to Hold and slashed its price target to $25.00 from $41.00 on Thursday, as the stock has 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 downgrade follows what Jefferies described as a significant second-quarter 2025 earnings miss, which has created uncertainty about the company’s near-term prospects.

The investment firm cited concerns about a "protracted leadership and strategy change" at the theme park operator, noting that Six Flags has suspended its three-year financial outlook.

Jefferies also pointed to the ongoing CEO transition as a factor that "calls into question the earnings power" the firm can confidently assess for Six Flags.

The research note indicated that Jefferies’ previous investment thesis of "solid, stable management and strategy no longer holds," leading the firm to "prefer to watch the repetitive leadership changes from the sidelines."

In other recent news, Six Flags Entertainment Corporation announced its second-quarter 2025 earnings, which fell short of expectations. The company reported an earnings per share (EPS) of $0.99, missing the anticipated $1.03. Additionally, Six Flags’ revenue for the quarter was $930 million, which did not meet the forecasted $1.03 billion. These results reflect a significant shortfall in both earnings and revenue projections. Following this earnings announcement, investor sentiment was notably affected. The financial results have drawn attention from analysts and stakeholders alike, highlighting the challenges faced by the company. As these developments unfold, investors continue to monitor the situation closely.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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