Six Flags Entertainment initiated with an Underweight at JPMorgan

JPMorgan initiated coverage of Six Flags Entertainment with an Underweight rating and $50 price target. The firm believes Six Flags will be focused on recapturing the lost attendance, which comes with potential pricing pressure on admissions. The company recently eliminated the guest surcharge fee on in-park food and beverage and retail purchase at legacy Six Flags parks, pointing to increasing pressure to in-park per caps, the analyst tells investors in a research note. JPMorgan says that while the combined company is well positioned in the regional theme park industry driven by geographic diversification and opportunity to deliver an enhanced guest value proposition, it sees the potential benefits and upside reflected in the stock’s valuation.