Why Cedar Fair is attracting positive ratings from Wall Street



Broker ratings

Following the announcement of 4Q14 and fiscal 2014 results, Wall Street analysts covering Cedar Fair (FUN) have reviewed the company’s results and made their recommendations. Cedar Fair’s 200-day moving average share price is $49.73 with a 52-week high and low of $56.09 and $43.81, respectively.

The above chart shows that all five analysts have rated the stock as buy. Cedar Fair has a consensus rating of buy with a mean price target of ~$60, which is 7% higher than the share price close on February 24, 2014. The highest target price estimate has been put at $61 by FBR Capital Markets, while the lowest price target estimate was calculated at $44 by Hilliard Lyons.

FBR Capital Markets has given an unchanged outperform rating with a revised price target of $61 from $55. Similarly, Credit Suisse (CS) has given an unchanged outperform rating with a revised price target of $60 from $53.

Credit Suisse also rated Six Flags Entertainment (SIX) as outperform with a price target of $55 after the release of its 4Q14 and fiscal 2014 results. 

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Investment through ETFs

Investors who are looking to invest in dividend-paying companies may hold their portfolio in ETFs like Global X SuperDividend (DIV). DIV tracks the performance of companies that rank among the highest dividend-yielding equity securities in the United States. Six Flags comprises ~2% of DIV.

Investors can also invest in ETFs like the Consumer Discretionary Select Sector SPDR Fund (XLY) to hold a diversified portfolio in leisure companies. XLY has highest exposure of ~7% in The Walt Disney Company (DIS).


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