Following the downturn in SeaWorld Entertainment Inc’s SEAS stock since the COVID-19 outbreak, the headwinds seem fully priced in and the expectations are relatively low, according to Credit Suisse.
The SeaWorld Analyst: Benjamin Chaiken upgraded SeaWorld's stock from Neutral to Outperform, while raising the price target from $13 to $30.
The SeaWorld Thesis: There has been a delay in the construction of Epic Universe, which is now expected to be completed in 2024-2025, Chaiken said.
He added that there was “renewed potential for incremental cost savings, given the creativity of the new management team and savings on labor.”
Although Orlando has been lagging, “we think that is well understood by investors, and we see some positive momentum from further reopening in the state as well as air traffic trends,” the analyst wrote in the note.
He added that SeaWorld seems poised to benefit from “a news flow perspective should travel restrictions continue to loosen.”
Chaiken lowered the earnings estimate for 2021 from 30 cents to -64 cents per share, but raised the estimate for 2022 from 88 cents to $1.76 per share.
SEAS Price Action: Shares of SeaWorld had risen by 7.8% to $22.20 at the time of publication Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
