Oppenheimer Upgrades This Theme Park Company

by Shivani Kumaresan, Benzinga Staff Writer

January 18, 2022 7:22 AM | 1 min read | Make a Comment

Oppenheimer analyst Ian Zaffino upgraded Six Flags Entertainment Corp SIX to Outperform from Perform with a $54 price target, implying a 32.78% upside.
The analyst believes the company's newly-appointed CEO Selim Bassoul's strategy of "premiumization" is the right one.
The company has been focused on attendance growth for too long and has neglected obvious pricing opportunities and customer experience improvements, Zaffino said.
The analyst added that the correct path to sustainable revenue growth appears to be through fewer guests who are willing to pay up for a better product/experience.
While the strategy will likely drive less attendance, the analyst argues that it should result in significantly stronger pricing.
Price Action: SIX shares closed lower by 2.09% at $40.68 on Friday.