Market Overview

KeyBanc Likes SeaWorld's Momentum

Share:
KeyBanc Likes SeaWorld's Momentum
Related SEAS
3 Reasons To Like SeaWorld's Stock
Benzinga's Top Upgrades, Downgrades For January 17, 2019

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
Jan 2019Wells FargoUpgradesMarket PerformOutperform
Dec 2018CitigroupMaintainsSellSell
Nov 2018KeyBancUpgradesSector WeightOverweight

View More Analyst Ratings for SEAS
View the Latest Analyst Ratings

Posted-In: brett Andress Infinity Falls KeyBanc Sesame StreetAnalyst Color Analyst Ratings Best of Benzinga

 

Related Articles (DIS + SEAS)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
MDRXKeyBancUpgrades0.0
ANETNomuraUpgrades260.0
CNPRBC CapitalUpgrades34.0
FISVOppenheimerUpgrades88.0
FNDUBSUpgrades37.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Messy Weather To Slow Down Truckers, Disrupt Holiday Travel This Week

EUR/USD Forecast: Unconvincing Recovery as the Focus Shifts to the Fed