Published on 19 Jun 2024 on Zacks · via Yahoo Finance

Cedar Fair (FUN) Soars 5.6%: Is Further Upside Left in the Stock?

Cedar Fair, L.P. (FUN) shares ended the last trading session 5.6% higher at $46.63. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.3% loss over the past four weeks.

Shares of Cedar Fair surged following upbeat remarks from an analyst at B. Riley Securities regarding the merger with Six Flags Entertainment and revised price targets. The analyst predicts substantial shareholder value creation from the merger. Optimism is fueled by expectations of reduced seasonal and weather impacts due to the combined footprint of 27 amusement parks and 15 water parks across diverse U.S. regions. The merger is also expected to introduce unified season pass options, boosting park visitation by offering access to the entire park network. Projections suggest synergies could generate approximately $200 million in additional adjusted EBITDA over the next 2-3 years, alleviating inflationary pressures and enhancing overall consumer value.