Six Flags upgraded to Buy from Hold at Jefferies

Jefferies upgraded Six Flags (SIX) to Buy from Hold with a price target of $32, up from $25. The analyst says the merger of Cedar Fair (FUN) and Six Flags materially increases value for Six Flags holders. Six Flags has struggled with its operating model where Cedar Fair has executed more consistently, the geographic redundancy is minimal and offers scale benefits, the synergies are credible and imply considerable value with unaggressive assumptions, the analyst tells investors in a research note. The firm says the value upside does not benefit from real estate financial engineering.