United Parks & Resorts stock price target lowered by Guggenheim on weather issues

Investing.com - Guggenheim lowered its price target on United Parks & Resorts (NYSE:PRKS) to $67.00 from $74.00 on Wednesday, while maintaining a Buy rating on the stock.

The price target reduction reflects Guggenheim’s updated model accounting for adverse weather conditions and competitive pressure from Epic Universal in the Orlando market, based on foot traffic data analysis.

Guggenheim now forecasts second-quarter revenue of $499 million, down from its previous estimate of $519 million, and projects EBITDA of $220 million, reduced from $235 million previously.

The firm expects attendance to remain flat for the quarter despite an approximately 140,000 visitor benefit from Easter and Spring Break timing this year.

Guggenheim noted that while United Parks & Resorts management is targeting record revenue and EBITDA this year, the firm’s estimates now fall below those benchmarks.

In other recent news, United Parks & Resorts reported its first-quarter 2025 earnings, revealing a net loss that was larger than expected. The company posted an EPS of -$0.29, missing the forecasted -$0.21, and revenue also fell short, coming in at $286.9 million against a projected $295.77 million. Despite these results, the company maintains an optimistic outlook for the full year, expecting record revenue and adjusted EBITDA, driven by new attractions and increased international ticket sales. Meanwhile, 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 based on a decrease in the second-quarter adjusted EBITDA estimate to $226 million, down from $233 million. The company’s management remains confident in achieving their financial targets, citing strong performance in April with an 8.1% increase in attendance compared to April 2024. Citi analysts also noted a slight deceleration in foot traffic during May. Despite the challenges, United Parks & Resorts plans to explore hotel and real estate development opportunities to enhance its offerings.

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