Send me real-time posts from this site at my email

Is Cedar Fair Stock Headed for $43?

Cedar Fair (NYSE: FUN) could be the most attractive stock for investors looking to bet on a rebound in the battered theme park industry niche. Goldman Sachs analyst Stephen Grambling started coverage on the sector by singling out the regional park specialist with a buy rating and a $43 price target, equating to a 30% return from current levels.

Cedar Fair, like its peers Six Flags and SeaWorld, has seen its stock price plummet through the social distancing efforts that started in mid-March. That slump could set the stage for a sharp rebound if conditions improve in time for the peak summer attendance season.

Conversely, there's a good chance that these stocks will fall further if demand doesn't return, or if an outbreak occurs at any one of their parks following reopening.

Image source: Getty Images.

Cedar Fair does boast some valuable assets, including a robust season pass program that's still attracting strong demand. Yet it's likely that the industry will take a year or longer to recover lost ground -- especially as the COVID-19 threat remains.

That's why investors who aren't seeking high-risk situations might want to keep this stock on their watch list, rather than purchasing shares, until they see evidence of a sustained operating rebound.

10 stocks we like better than Cedar Fair
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Cedar Fair wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of April 16, 2020

Demitrios Kalogeropoulos has no position in any of the stocks mentioned. The Motley Fool recommends Cedar Fair. The Motley Fool has a disclosure policy.


Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue