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Deutsche Financial institution got here out with a optimistic word on the theme park sector primarily based on the expectation that sturdy shopper spending this spring and summer season will result in spectacular money stream technology for the group. A possible wildcard is that if the disruption to the most important league baseball season extends to enhance theme park site visitors.
The agency upgraded Six Flags Leisure (NYSE:SIX) to a Purchase score after having it slotted at Maintain.
Analyst Chris Woronka: “We expect this can be a group that ought to be broadly owned primarily based on an expectation {that a} continuation of sturdy shopper spend on experiences, company-specific initiatives aimed toward driving whole per capita spend above final yr’s document ranges, and lapping of serious inflationary pressures in 2H ought to lead to vital money stream technology and, in SIX’s case, a re-rating of valuation.”
The theme park sector is seen holding up higher than different shopper discretionary industries from inflation and geopolitical headwinds.
Woronka and workforce additionally enthusiastically beneficial Purchase-rated SeaWorld Leisure (NYSE:SEAS) and Cedar Truthful (NYSE:FUN). Though not a pure-play theme park identify, Disney (NYSE:DIS) may get a lift if the Deutsche Financial institution theme is correct.
Evaluate valuation and growth metrics on SIX, SEAS, FUN and DIS.
