Jefferies analysts have given Six Flags Entertainment stock a boost, upgrading it to a “Buy” rating and increasing its price target to $32. This upgrade comes as a result of the theme park operator’s merger with Cedar Fair. Jefferies Managing Director, David Katz, who made the upgrade call, believes that Six Flags has struggled with inconsistency in its strategy and management.
Katz explains, “The main reason behind our upgrade is that by combining these businesses and establishing a clear value proposition, along with implementing a stable capital allocation framework, Six Flags can regain its position of being traded at a double-digit multiple level while also returning capital to its shareholders.”
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