Mizuho lowers United Parks & Resorts stock price target on slower trends

Published 04/08/2025, 16:56
Mizuho lowers United Parks & Resorts stock price target on slower trends

Investing.com - Mizuho (NYSE:MFG) maintained its Underperform rating on United Parks & Resorts (NYSE:PRKS) but lowered its price target to $44.00 from $45.00 on Monday.

The research firm cited slower-than-anticipated underlying trends as the primary reason for the adjustment, prompting a slight reduction in estimates for the theme park operator.

United Parks & Resorts stock has declined 17% year-to-date, compared to the S&P 500’s 6% gain, with Mizuho suggesting further downside potential despite market sentiment shifting from negative to positive over the past month.

Mizuho currently models second-quarter EBITDA of $225.9 million for PRKS, compared to its previous estimate of $227.4 million and the Street consensus of $218.3 million.

The firm noted that deceleration in foot traffic may be partially offset by costs pulled forward in the first quarter (approximately $3 million) and easier year-over-year comparisons due to one-time expenses of $5 million in the second quarter of 2024.

In other recent news, United Parks & Resorts reported its Q1 2025 earnings, which showed a net loss greater than analysts had anticipated. The company posted an earnings per share (EPS) of -$0.29, missing the forecasted -$0.21. Revenue also fell short, coming in at $286.9 million compared to the expected $295.77 million. Despite these results, the company’s stock experienced a rise in pre-market trading. Additionally, Citi analysts adjusted their outlook for United Parks & Resorts, lowering the price target to $49 from $51, while maintaining a Neutral rating. This revision was due to a decrease in the second-quarter adjusted EBITDA estimate and a slightly lower attendance forecast. Guggenheim also revised its price target for the company, reducing it to $67 from $74, citing adverse weather conditions and competitive pressures. These developments highlight recent challenges and adjustments facing United Parks & Resorts.

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