Six Flags initiated with an Underweight at JPMorgan

JPMorgan initiated coverage of Six Flags (SIX) with an Underweight rating and $16 price target. In the near-term, the analyst sees a pair trade opportunity within the regional theme park industry, noting Six Flags is trading at a 2 turn valuation premium to SeaWorld (SEAS). The firm sees theme parks as a “market share donor post-pandemic” and downside risk to Six Flags’ consensus estimates over the next 18 months.