Guggenheim lowered its price target on Six Flags Entertainment (NYSE:FUN) to $48 from $50, while maintaining a Buy rating, citing weather-related challenges that pressured Q2 performance.
The analysts noted unfavorable weather across much of the company’s park portfolio through April, May, and early June — including the key Memorial Day weekend — which likely weighed on attendance and season pass sales velocity. As a result, Guggenheim reduced its Q2 revenue forecast to $1.045 billion (from $1.072 billion) and EBITDA to $383 million (from $408 million).
While July and late Q3 weather comparisons are expected to be easier year-over-year, execution remains critical to achieving full-year EBITDA guidance. Guggenheim’s FY EBITDA projection now sits at $1.081 billion, the low end of Six Flags' $1.08B–$1.12B range.
Key focus areas for the company include enhancing guest experience, unlocking cost synergies, driving free cash flow efficiency through targeted park investments, integrating tech systems, and lowering net leverage.
