Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Six Flags Extends Selloff on KeyBanc Downgrade After 'Indefensible' Results

Published 08/12/2022, 09:30 AM
Updated 08/12/2022, 09:36 AM
© Reuters.  Six Flags (SIX) Extends Selloff on KeyBanc Downgrade After 'Indefensible' Results

© Reuters. Six Flags (SIX) Extends Selloff on KeyBanc Downgrade After 'Indefensible' Results

By Senad Karaahmetovic

A KeyBanc analyst downgraded shares of Six Flags Entertainment (NYSE:SIX) to Sector Weight from Overweight.

Despite the analyst not liking “reactionary downgrades”, he admits Q2 results were “indefensible”. SIX shares fell over 18% yesterday after delivering Q2 results that showed a drop in theme parks attendance.

“In this tape/macro backdrop, we do not think patience is abundant, and mgmt is likely to be stuck talking into the void until it gets another shot at proving this out next season; and if we're being honest with ourselves here, the stock feels washed out after today's move (6.6x our FY23E EBITDA), but we don't see a compelling story/path forward anymore,” he said in a client note.

The analyst also lowered estimates as SIX “story feels stuck until next year.” He has “waning conviction in SIX's strategy,” after the Q2 results confirmed “a deeper than expected reset to models, and, in our view, there was not much cohesiveness as to how things actually get better from here."

SIX shares are down over 50% YTD.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.