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Investing.com - Guggenheim lowered its price target on Six Flags (NYSE:SIX) Entertainment (NYSE:FUN) to $43.00 from $48.00 on Thursday, while maintaining a Buy rating on the stock. The theme park operator’s shares currently trade at $24.32, down nearly 45% over the past six months, with InvestingPro data showing the stock in oversold territory.
The price target reduction follows Six Flags’ second-quarter results, which fell short of Guggenheim’s expectations. The theme park operator reported revenue of $930 million versus Guggenheim’s estimate of $1,045 million, and adjusted EBITDA of $243 million compared to the firm’s projection of $383 million. The company’s trailing twelve-month revenue stands at $3.17 billion, with a concerning debt-to-equity ratio of 2.99x.
Guggenheim attributed the underperformance primarily to unfavorable weather conditions that affected most of Six Flags’ portfolio, particularly during the final six weeks of the quarter. The weather issues resulted in a 12% decline in attendance, with 379 out of 2,042 operating days impacted and 49 days where parks closed entirely.
Following these results, Six Flags management significantly lowered its full-year guidance, prompting Guggenheim’s revised outlook and model update.
Guggenheim identified several key execution initiatives for Six Flags moving forward, including enhancing guest experience, achieving cost synergies to drive margin expansion, implementing disciplined park investment to maximize free cash flow efficiency, integrating technology systems, and reducing net leverage.
In other recent news, Six Flags Entertainment reported its second-quarter 2025 earnings, revealing a shortfall in both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $0.99, which was below the expected $1.03, and its revenue came in at $930 million, missing the forecasted $1.03 billion. These earnings results have raised concerns among investors about the company’s financial performance. Additionally, Jefferies downgraded Six Flags’ stock rating from Buy to Hold, reducing its price target to $25.00 from $41.00, citing leadership uncertainty and a significant earnings miss as reasons for the downgrade. Goldman Sachs also lowered its price target for Six Flags to $23.00 while maintaining a Neutral rating, pointing to the withdrawal of long-term guidance as an indication of structural challenges. These developments underscore the challenges Six Flags is currently facing in the market.
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