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Six Flags gets downgraded twice in a day by analysts

Six Flags has received has received a double black eye from a few of the analysts and this is a situation which is exceedingly rare as the stock had been downgraded two times in less then 24 hours by Wells Fargo.

On Thursday, at the time when the closing bell rang, Timothy Conder had the rating of overweight and a price target of $49 a share on the stock of the theme park. Later in the night, Conder had downgraded Six Flags to equal weight and the target pricing to the $42 as it cited the concerns about the problem plagued projects of the company in China. He had been a lot more bullish on the prospects of the company in the United States.

He said in a note on Thursday that the beneficial smoothing seasonally of the tiered memberships and Domestic strength might be getting clouded by the adjustments due to the international projects.

The idea of it having strength domestically though had evaporated soon. Six Flags had said on the morning of Friday thatit is going to report no revenue in the fourth-quarter from the partnerships in China and that its attendance had been declining every year in the parks for this quarter. Conder then had to go back to the drawing board and had to further slash his targets to be $38 and downgrade this rating to “underweight”.

It closed a level of $43.76 a share one day ago and the company had plunged over 18% on this Friday and is currently trading below the latest price target for Wells Fargo.

Based on the estimates which have been revised, the dividend is appearing to be secure however the investors are unlikely to give the company any credit for the short term until there is clarity on the domestic demand levels.

Marsha Austin
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SR. CONTENT WRITER At Chemical News Reports

Being the Head of the Science Department, Marsha Austin holds the responsibility to carry out all the activities of this department smoothly. While she is active in this métier from the last 5 years, she has pursued a B.Sc. degree in Astrophysics to nurture her passion for the science domain. Moreover, with her promising managerial capabilities, her contribution to our organization has set a benchmark for other members at Chemical News Reports. Our platform recently completed 5 Years of togetherness with Marsha. Her work adeptness and splendid presentation skills always catch the eyes of the other members of the Chemical News Reports team.

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