SeaWorld Entertainment Inc. was upgraded Thursday to neutral from underperform at Credit Suisse, but that doesn’t mean the analysts have high hopes for the company.
The upgrade came as analyst Benjamin Chaiken didn’t think SeaWorld SEAS, +0.76% was “in a better position structurally,” just that Wall Street’s expectations and the stock’s valuation are now more reasonable than in May, when he turned bearish on the stock. He said the upgrade is also based on the belief that SeaWorld should, and will, lower its dividend and use the money to reinvest in the business, pinning its hopes on the addition of new roller coasters.
Shares of SeaWorld climbed 0.8%, but had been up as much as 3.1% earlier in the session. The shares have tumbled 28% in the past three months, compared with the S&P 500’s SPX, -0.08% gain of 5.9%.