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KeyBanc Likes SeaWorld's Momentum

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KeyBanc Likes SeaWorld's Momentum

SeaWorld Entertainment Inc (NYSE: SEAS) management seems committed to their timeline of opening the Sesame Street attraction in the spring, adding to the company’s “high-quality marketable attractions,” according to KeyBanc Capital Markets.

The Analyst

KeyBanc's Brett Andress maintains an Overweight rating for SeaWorld, with an unchanged $35 price target.

The Thesis

SeaWorld will have healthy momentum in 2019 and beyond, given the opening of the Sesame Street attraction and the new Infinity Falls. Both attractions are poised to benefit from growth in the Orlando market, following the launch of Walt Disney Co (NYSE: DIS)'s Star Wars theme park attractions in the fall, Andress said.

SeaWorld seems to be on track with the plan for $50 million of additional savings in 2020 and the new headquarters creates an opportunity to further consolidate corporate functions.

The company witnessed healthy initial response to its new season pass offerings launched in October. SeaWorld seems poised for growth in FY2019, with deferred revenues more than 15 percent exiting the third quarter and over 40 percent pass penetration, Andress said.

Management indicated an increase in international marketing, which should be able to create enough momentum to partially offset currency exchange related headwinds.

Price Action

Shares of SeaWorld were trading around $28.15 at the time of publication.

Related Links:

KeyBanc Expresses Confidence In SeaWorld Turnaround In Upgrade

SeaWorld Shares Rally After Comeback Quarter

Latest Ratings for SEAS

DateFirmActionFromTo
Aug 2020KeyBancMaintainsOverweight
Jul 2020Janney CapitalDowngradesBuyNeutral
Jun 2020CitigroupUpgradesNeutralBuy

View More Analyst Ratings for SEAS
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