UPDATE: Credit Suisse Initiates Coverage on Six Flags Entertainment Corp. with Outperform Rating, $87 PT on Upside From Multiple Factors

In a report published Friday, Credit Suisse analyst Joel Simkins initiated coverage on Six Flags Entertainment Corp.

with an Outperform rating and $87.00 price target. In the report, Simkins noted, “SIX is one of the world's leading regional theme park operators, with 19 locations drawing almost 26m visitors in 2012. Following its re-emergence in April 2010, SIX has been revitalized by management setting and achieving intermediate and long-term objectives. Additionally, SIX is benefiting from upgraded parks, improved marketing (local and social), a renewed focus on pricing (less discounts, premium offerings, season passes), operating efficiencies, and a healthier balance sheet. After emerging from bankruptcy, shares have returned 235% versus a 40% gain in the S&P 500. However, SIX is still an undiscovered story with limited Street coverage and old notions about the business. SIX is much different today as we are attracted by LT pricing opportunities, leverage to a regional consumer recovery, FCF generation, high barriers to entry, and rationale competition. Our $87 target price is based on a multiple of 12 times our 2015 EBITDA estimate of $471m, discounted back.” Six Flags Entertainment Corp. closed on Thursday at $70.15.