Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Stifel has reduced its price target on United Parks & Resorts (NYSE:PRKS) to $63.00 from $65.00 while maintaining a Buy rating on the stock.
The firm cited weather as having a "material impact" on the company’s quarterly results, though this factor was "already well understood" by investors. Despite weather challenges and a calendar shift affecting Spring Break and Easter, attendance figures exceeded what Stifel described as "subdued expectations." The company maintains a solid profit margin of 50.3%, according to InvestingPro data.
Stifel noted that United Parks & Resorts has managed to grow attendance at its Orlando parks through early August, suggesting that the impact from Universal’s Epic park opening has been "less than what was embedded in the share price." The company employed marketing and promotional tools to counter headwinds from both the Epic opening and weather conditions.
Forward demand indicators, including group bookings and Discovery (NASDAQ:WBD) Cove performance, appear "healthy" into early 2026, with Stifel pointing to returning international visitors and group business as positive factors for the 2026 operating season.
United Parks & Resorts has announced a new $500 million share repurchase program, which could represent approximately 20% of total outstanding shares if fully implemented, according to Stifel’s analysis. The firm also highlighted the company’s "significant FCF" generation and "solid" balance sheet position.
In other recent news, United Parks & Resorts reported its second-quarter 2025 earnings, which fell short of analysts’ expectations. The company posted an earnings per share (EPS) of $1.45, missing the forecasted $1.84, with a negative surprise of 21.2%. Additionally, revenue was reported at $490.2 million, which was below the anticipated $502.7 million. This earnings miss has raised concerns among investors. In another development, Goldman Sachs adjusted its price target for United Parks & Resorts to $50.00 from $53.00, maintaining a Neutral rating. The firm cited ongoing pressures on the company’s fundamentals expected to persist through the year. Despite the attendance impact from Epic Universe being less severe than expected, these factors influenced Goldman Sachs’ decision. These recent developments highlight the challenges faced by United Parks & Resorts in the current market environment.
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