On Thursday, Guggenheim initiated coverage on United Parks & Resorts (NYSE:PRKS), assigning a Buy rating to the stock with a price target of $73.00. United Parks & Resorts, known for its portfolio of 12 regional theme parks across the United States, including popular brands such as SeaWorld (NYSE:PRKS), Busch Gardens, Aquatica, and Sesame Place, was recognized for its strong financial foundation and potential for growth.
The financial firm highlighted United Parks' robust financial profile, which is supported by a strong balance sheet and a history of returning capital to shareholders. Guggenheim identified multiple potential growth catalysts for the company, emphasizing opportunities to drive increased attendance, push per capita revenue higher, and realize upside potential from the development of hotels and international parks.
Guggenheim's price target is based on optimistic forecasts for the company's performance in 2024. The firm projects an EBITDA of $750 million based on an expected attendance of 21.97 million guests and per capita revenue of $81.07. These projections are slightly more bullish than the consensus forecasts, which anticipate an EBITDA of $729 million, with attendance figures at 22.1 million and per capita revenue at $79.90.
The positive outlook from Guggenheim reflects a confidence in United Parks & Resorts' ability to capitalize on its existing assets and expand its market presence. With a price target of $73.00, the firm signals its belief that the stock represents a valuable investment opportunity.
InvestingPro Insights
As United Parks & Resorts (NYSE:PRKS) gains attention with Guggenheim's optimistic outlook and a Buy rating, let's delve into some key metrics and insights from InvestingPro that could provide investors with a broader picture of the company's financial landscape. With a market capitalization of $3.62 billion, United Parks & Resorts shows a solid financial foundation. The company's P/E ratio, an indicator of what the market is willing to pay for a company's earnings, stands at 15.37, which adjusts to 13.78 when considering the earnings of the last twelve months as of Q4 2023. This suggests a market sentiment that values the company's recent profitability.
InvestingPro Tips indicate that analysts are optimistic about United Parks & Resorts' future, having revised their earnings upwards for the upcoming period. Additionally, the company has been profitable over the last twelve months and has experienced a significant price uptick over the last six months, with a 26.03% total return. This aligns with the growth potential identified by Guggenheim, signaling a company that is on an upward trajectory. However, it's important to note that the company does not pay a dividend, which may influence investment decisions for income-focused shareholders.
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