60%+ returns in 2025: Here’s how AI-powered stock investing has changed the game
Investing.com - Mizuho has lowered its price target on United Parks & Resorts (NYSE:PRKS) to $28.00 from $46.00 while maintaining an Underperform rating, citing weaker-than-expected quarterly performance and rising costs.
The firm noted that PRKS experienced a "much softer quarter than anticipated," with the company attributing challenges to weather and calendar shifts, though Mizuho believes underlying trends were simply slower than expected. This aligns with the company’s recent performance metrics, as InvestingPro data shows revenue declined 3.27% over the last twelve months to $1.67 billion.
Mizuho expressed concern that the company’s cost-saving initiatives appear to have run their course, pointing out that cash operating costs increased 3.6% despite revenue declining 6% during the quarter.
The research firm highlighted that PRKS had targeted $65 million in cost savings for fiscal year 2025, which suggests underlying cash costs actually rose by approximately 9%, potentially creating a "material headwind" to EBITDA as the company moves into 2026.
Mizuho’s revised EBITDA estimate of $599 million assumes cash costs will increase by only 2% with flat revenue, significantly below the Street consensus of $656 million, which the firm considers "very unlikely" without revenue growth, noting that revenue has been "flat/down the last three years." Current EBITDA stands at $576.05 million based on last twelve months data from InvestingPro, which offers additional ProTips and comprehensive analysis in its Pro Research Report, available for over 1,400 US equities.
In other recent news, United Parks & Resorts reported its third-quarter 2025 earnings, which fell short of analysts’ expectations. The company announced an earnings per share (EPS) of $1.61, significantly below the projected $2.26, marking a 28.76% miss. Additionally, the revenue for the quarter was reported at $511.9 million, which is lower than the anticipated $540.48 million, representing a 5.29% shortfall. Following these results, Goldman Sachs adjusted its price target for United Parks & Resorts to $44.00, down from its previous target, while maintaining a Neutral rating. The firm highlighted concerns over a larger-than-expected EBITDA miss, with earnings declining 16% year-over-year. These developments raise questions about potential secular and structural issues with the company’s assets and execution capabilities. These recent updates are crucial for investors monitoring the company’s financial performance and market standing.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.