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Benzinga
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Six Flags' Stock Reflects Best-Case Scenario—Analyst Warns Of Growth & Cost Risks

1. J.P. Morgan reiterates Underweight rating on Six Flags with a $46 price target. 2. FUN's EBITDA fell 30% short of expectations, driven by revenue and cost issues. 3. Attendance increased 6.2% year-over-year, slightly missing 6.5% growth forecast. 4. Management targets 55 million attendees by 2027, focusing on volume in 2025. 5. Risks include attendance challenges, pricing pressure, and high capital expenditure needs.

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FAQ

Why Bearish?

The significant EBITDA miss and pressure on growth expectations suggest bearish sentiment. Historical examples, such as prior performance misses, correlate with subsequent stock declines.

How important is it?

The detailed analysis of earnings and future projections indicate significant implications for stock price viability.

Why Short Term?

Immediate market reactions to quarterly performance often lead to short-term price fluctuations, as seen in previously poor earnings seasons.

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