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Investing.com — Time to take a dip into SeaWorld (NYSE:SEAS).
Credit Suisse (SIX:CSGN) upgraded the stock to outperform from neutral, and boosted its price target to a Street-high $30 from $13 despite travel being off the menu for most American families in the near-term — thanks to the Covid-19 virus spread that is scaring people away from planes and public places.
Shares rose 7% on the upgrade on Tuesday. They are trading around $21.76.
The three main concerns seen by analyst Benjamin Chaiken have either been priced in or have changed.
“First, construction on Epic Universe has been delayed, and it sounds like the completion date may be closer to 2024-25. Second, we see renewed potential for incremental cost savings,” StreetInsider reported the analyst as saying. “Third, while Orlando has been lagging, we think that is well understood by investors, and we see some positive momentum from further reopening in the state as well as air traffic trends.”
SeaWorld is also in a good position to benefit from a news flow perspective should travel restrictions continue to loosen, Credit Suisse said.
Shares are down 31% since the start of the year.
