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Cedar Fair stock target raised, maintains buy rating on strong operational setup

EditorNatashya Angelica
Published 05/10/2024, 07:19 PM

On Friday, Stifel has increased its price target on Cedar Fair (NYSE: NYSE:FUN) shares, moving the figure up to $53.00 from the previous $52.00, while keeping a Buy rating on the stock. The firm highlighted Cedar Fair's strong operational setup as the company awaits the completion of its merger with Six Flags (NYSE:SIX), anticipated around late June 2024.

Cedar Fair's recent performance has been bolstered by favorable weather comparisons and robust season pass sales for the year 2024. Moreover, the firm noted the health of the core consumer market, suggesting potential for the company's financial results to surpass current consensus estimates. On days with normal weather conditions, customer demand and spending levels have been observed to remain strong.

Despite a potential slight decrease in per capita spending due to changes in attendance mix, notably the impact from Knott's, Stifel does not consider this a long-term concern. Instead, the firm's focus is on the growth of EBITDA rather than per capita spending figures.

The progress of the merger between Cedar Fair and Six Flags, along with the earnings potential of the combined entity, is expected to influence the near-term movement of Cedar Fair's share price. Nevertheless, Stifel sees value in the shares for long-term investors, indicating a positive outlook for the company's financial future beyond the immediate effects of the merger.

InvestingPro Insights

Following Stifel's recent price target increase for Cedar Fair (NYSE: FUN), InvestingPro data and insights offer additional context for investors considering the stock. The company's market capitalization stands at a robust $2.22 billion, and it currently trades with a forward Price to Earnings (P/E) ratio of 14.16, a figure that suggests a potentially more attractive valuation compared to the industry average.

InvestingPro Tips indicate that analysts have recently revised their earnings expectations downward for the upcoming period, which investors should factor into their analysis. Yet, the stock has experienced a significant return over the last week, and with Cedar Fair trading near its 52-week high, there's momentum that could be of interest to investors looking for short-term gains. Moreover, analysts remain optimistic about the company's profitability this year, a sentiment that aligns with Stifel's positive outlook.

For those looking to delve deeper into Cedar Fair's financials and future prospects, InvestingPro offers additional tips that could provide further insights. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 5 more InvestingPro Tips available that could help investors make a more informed decision on Cedar Fair.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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