Sell Six Flags, Buy Cedar Fair and SeaWorld?
Roller coasters have their ups and downs, and the same can apparently be said about the country's leading amusement park operators. Goldman Sachs analyst Lizzie Dove initiated coverage of three of the largest operators of regional gated attractions on Wednesday, ahead of the industry's peak summer season.
The three stocks are apparently not all heading in the same direction. Dove initiated coverage of Six Flags (NYSE: SIX) will a sell rating. But her view of Cedar Fair (NYSE: FUN) and SeaWorld Entertainment (NYSE: SEAS), was far rosier: She kicked off coverage of those two operators with buy ratings. It's not typical to see polarized perspectives for operators in an industry that typically rises or sinks with the tide of regional consumer sentiment.
Shares of Six Flags rallied earlier this month after the company posted its first-quarter results. The results may not seem impressive at first glance. Revenue rose a mere 3% year over year to $142 million, and its loss per share widened. However, the company's results exceeded expectations on both ends of the income statement, something Six Flags hadn't done in more than a year.
Source Fool.com
