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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 concerns about the company’s cost structure and weaker-than-expected quarterly performance.
The firm noted that United Parks & Resorts had a "much softer quarter than anticipated," with the company pointing to weather and calendar shifts as factors. However, Mizuho believes the underlying trends were simply slower than expected, with the company emphasizing concerts and events to support attendance.
Mizuho expressed concern that the cost-saving story for United Parks & Resorts appears to be over, highlighting that cash operating costs increased 3.6% despite revenue declining 6%. The firm pointed out that despite the company targeting $65 million in cost savings for fiscal year 2025, underlying cash costs were up 9%.
Looking ahead to 2026, Mizuho sees a potentially material headwind to EBITDA, with its new estimate at $599 million assuming cash costs increase only 2% and revenue remains flat. The firm noted this is significantly below the apparent Street consensus of $656 million. For context, PRKS reported EBITDA of $576.05 million in the last twelve months.
Mizuho acknowledged its "significant respect for the transformation" at United Parks & Resorts but emphasized that revenue has been flat or down for the last three years, suggesting challenges ahead for the company to meet higher EBITDA expectations.
In other recent news, United Parks & Resorts reported its Q3 2025 earnings, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of $1.61, significantly below the expected $2.26, marking a surprise shortfall of 28.76%. Revenue also fell short, coming in at $511.9 million against a projected $540.48 million, a 5.29% deficit. Following this, Mizuho lowered its price target for United Parks & Resorts to $28.00 from $46.00, maintaining an Underperform rating due to weaker-than-expected quarterly performance and rising costs. Mizuho attributed these challenges to weather and calendar shifts but noted slower underlying trends. Additionally, Goldman Sachs reduced its price target to $44.00, maintaining a Neutral rating, citing a larger-than-expected EBITDA miss and a 16% decline in earnings year-over-year. Goldman Sachs expressed concerns about secular and structural issues with the company’s assets and execution capabilities. These developments highlight recent challenges facing United Parks & Resorts.
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