This may seem to be the sleepy season for the operators of national theme parks and regional amusement parks, but that didn't stop Timothy Conder at Wells Fargo from upgrading shares of Six Flags Entertainment (NYSE:SIX) on Thursday morning. The analyst feels that improving cash flow trends support the chain's turnaround strategy, making the goal of hitting as much as $500 million in adjusted EBITDA by next year more than reasonable.
Oppenheimer's Ian Zaffino is also reiterating his bullish outperform call on the stock, adjusting his price target lower given the recent correction in the shares. He feels the purveyor of scream machines will come through with a solid fourth quarter when it reports next month, given the increased operating days at its few year-round parks and expanded holiday offerings elsewhere.
A pair of Wall Street pros putting out encouraging notes on the same day when the regional amusement park giant has most of its gated attractions closed may seem strange, but there's a method to the analyst gladness. Let's go over the reasons why it could be smart to buy shares of Six Flags, Cedar Fair (NYSE:FUN), and even some of the larger theme park operators like Disney (NYSE:DIS) during the seasonal lull.