Cedar Fair initiated with an Overweight at Morgan Stanley

Morgan Stanley analyst Thomas Yeh initiated coverage of Cedar Fair with an Overweight rating and $53 price target. The regional theme parks are "high-return businesses" with double-digit levered free cash flow per share growth, says the analyst, who sees an attractive risk/reward skew among the group with valuation "well below pre-pandemic levels, even relative to other consumer sectors." The firm’s bullish industry view is based on unique brands, high barriers to entry, and complementary footprints, the analyst added.