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Fly News Breaks for October 4, 2018
FUN, SIX, SEAS
Oct 4, 2018 | 08:40 EDT
Citi analyst Jason Bazinet raised his price target for SeaWorld Entertainment (SEAS) to $20 from $15 but maintains a Sell rating on the shares. The stock's valuation is "rich on many metrics" after rallying 100% since May, Bazinet tells investors in a research note. He believes the multiple "looks stretched" when compared to peers like Six Flags (SIX) and Cedar Fair (FUN) given light of SeaWorld's higher capital intensity, lower free cash flow, lower dividend yield and higher leverage. Further, Bazinet expects SeaWorld's attendance trends to slow amid tougher comps.