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Wedbush Having Fun At Cedar Fair, Loves Its Yield & Growth

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In a report published Friday, Wedbush analysts initiated coverage of Cedar Fair, L.P. (NYSE: FUN) with an Outperform rating and a $69 price target. The analysts believe that investors are underappreciating the size and reliability of the stock's distribution payout, as well as the growth potential of the distribution in the coming years.

"[T]hrough a combination of distribution yield, distribution growth, and expanding valuation, we believe that FUN units represent a compelling total return story," the analysts said.

According to the Wedbush report, Cedar Fair is likely to be able to achieve its 2016 and 2018 adjusted EBITDA targets a year earlier than guided. In the longer term, however, the analysts expect the acceleration in EBITDA growth to slow down due to incremental investments and leveraging of the top line towards margin expansion.

"More broadly, we believe that Cedar Fair is a unique and compelling combination of risk and reward, with the vast majority of the company's reliable and growing cash flows being returned to investors," the analysts added.

Latest Ratings for FUN

DateFirmActionFromTo
Apr 2017Stifel NicolausInitiates Coverage OnBuy
Apr 2017SunTrust Robinson HumphreyInitiates Coverage OnHold
Apr 2017Goldman SachsInitiates Coverage OnBuy

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Posted-In: Vetr WedbushAnalyst Color Initiation Analyst Ratings

 

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