Jefferies analysts upgraded Six Flags Entertainment (SIX) stock to a "Buy" rating while raising its price target to $32 on the theme park operator's merger with Cedar Fair (FUN). Jefferies Managing Director David Katz — the analyst behind the upgrade call — characterizes Six Flags as lacking consistent strategy and management. "The essence of our call this morning is that by putting the businesses together and defining a clear value proposition, providing a stable set of capital allocation frameworks around the business, it can go back to trading at that double-digit multiple level while returning capital..." Katz tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Investing in SeaWorld Entertainment (NYSE: SEAS) these days has been like sitting in the soak zone at one of the marine life park's aquatic shows. SeaWorld Entertainment posted disappointing financial results on Wednesday morning. Six Flags (NYSE: SIX) confirmed reports that it would be acquiring regional amusement park operator Cedar Fair (NYSE: FUN) in a merger of equals.
Here is your Pro Recap of 4 head-turning deal dispatches you may have missed last week: Disney to buy the remaining stake in Hulu from Comcast's NBCUniversal, and deals at Six Flags Entertainment/Cedar Fair, Realty Income/Spirit Realty Capital, and United Therapeutics/Miromatrix Medical. On Thursday, in line with recent speculation, the amusement park companies Cedar Fair (NYSE:FUN) and Six Flags Entertainment (NYSE:SIX) disclosed their agreement to merge in an all-stock transaction. Upon completion of the merger, Cedar Fair's unitholders will hold a majority stake of 51.2%, while Six Flags' shareholders will possess around 48.8% in the newly formed entity, which is projected to have a pro forma enterprise value close to $8 billion.