D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - UBS has lowered its price target on Six Flags (NYSE:SIX) Entertainment (NYSE:FUN) to $40.00 from $49.00 while maintaining a Buy rating on the stock. The theme park operator’s shares, currently trading at $28.71, have declined over 40% year-to-date, according to InvestingPro data.
The downward revision follows UBS’s Amusement Park Wait-time Monitor showing "meaningfully weaker attendance" in June and the critical July 4th weekend compared to the April-May period, which had benefited from an Easter calendar shift.
UBS noted that June typically accounts for approximately 50% of second-quarter attendance for the amusement park operator, suggesting significant impact on quarterly results.
The investment firm expects Six Flags might report EBITDA below consensus numbers for the second quarter, potentially leading to a revision of the company’s full-year EBITDA guidance of $1.08 billion to $1.12 billion.
UBS cited weather conditions as a major factor, describing a "colder and wetter start to summer" affecting most Six Flags locations, though parks less impacted by adverse weather showed better performance.
In other recent news, Six Flags Entertainment reported several significant developments impacting its financial outlook and strategic plans. Guggenheim adjusted its projections for Six Flags, lowering the second-quarter revenue forecast to $1.045 billion and EBITDA to $383 million, citing weather-related challenges that affected park attendance and sales. S&P Global Ratings revised its outlook on Six Flags to negative due to weaker-than-expected performance and delayed debt reduction, with a plan to reduce leverage by 2026 through potential asset sales, including Six Flags America. Oppenheimer maintained its Outperform rating on Six Flags, despite adjusting its Q2 EBITDA estimate to $336 million, emphasizing the importance of the fall season for annual attendance. UBS maintained a Buy rating with a price target of $49, noting that its EBITDA forecast of $1.086 billion for 2025 is slightly below consensus estimates but aligns with the company’s revenue guidance. Stifel raised its price target for Six Flags to $50, expressing confidence in the company’s long-term financial goals, which include achieving $1.5 billion in adjusted EBITDA by 2028. These recent developments reflect a mixed sentiment among analysts, with varying degrees of optimism about Six Flags’ ability to meet its financial targets amid operational challenges.
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