Buy non-baseball theme park stocks, consumer spending is strong


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Deutsche Bank was positive on the theme park sector on anticipation of this strong consumer Spending this spring and summer will result in impressive cash flow generation for the group. A potential wildcard would be if the suspension of the Major League Baseball season boosted traffic at theme parks.

The company upgraded Six Flags Entertainment (NYSE:SIX) on a buy rating after being put on hold.

Analyst Chris Woronka: “We think this is a group that should be in broad ownership based on the expectation of continued strong consumer spending on experiences, company-specific initiatives aimed at driving total spending per capita above record levels of the last Year-to-date, and overlapping significant inflationary pressures in H2 should result in significant cash flow generation and, in the case of SIX, a valuation re-rating.”

The amusement park sector is faring better than other consumer discretionary industries against inflation and geopolitical headwinds.

Voronka and his team also recommended SeaWorld Entertainment with a buy rating (NYSE:A14YQA) and Cedar Fair (WKN: 855866). While not strictly a theme park, Disney is (NYSE:DIS) could get a boost if the Deutsche Bank theme is right.

Compare valuation and growth metrics from SIX, SEAS, FUN and DIS.


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