Citi cuts Six Flags target, opens ‘negative catalyst watch’

Citi analyst James Hardiman lowered the firm’s price target on Six Flags to $26 from $29 and keeps a Neutral rating on the shares. The analyst also opened a “90-day negative catalyst watch” on the shares ahead of the Q2 report. Citi’s deep dive into the foot traffic, weather, ticket pricing, and operating calendar trends at U.S. theme parks “shows generally lackluster trends,” the analyst tells investors in a research note. While early-season trends were understood to be weather impacted, there has not been the type of improvement hoped for as weather has normalized, casting doubt on the previous trade-down thesis, contends Citi. Ahead of the Q2 reports, the firm believes theme park estimates are “too high across the board.”