Six Flags-Cedar Fair merger offers 'stable operating model'

Jefferies analysts upgraded Six Flags Entertainment (SIX) stock to a “Buy” rating while raising its price target to $32 on the theme park operator’s merger with Cedar Fair (FUN). Jefferies Managing Director David Katz — the analyst behind the upgrade call — characterizes Six Flags as lacking consistent strategy and management.

“The essence of our call this morning is that by putting the businesses together and defining a clear value proposition, providing a stable set of capital allocation frameworks around the business, it can go back to trading at that double-digit multiple level while returning capital…” Katz tells Yahoo Finance.

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