Stifel cuts Six Flags stock price target on leverage concerns

Investing.com reports that Stifel has reduced its price target for Six Flags Entertainment (FUN) shares from $23 to $15 while retaining a Buy rating. The stock is currently trading at $9.22, down 61% over the past year due to investor concerns over the company's financial position. Stifel notes that Six Flags is now actively seeking to divest additional properties to reduce debt, following a previous reluctance to pursue such sales.

The firm anticipates that like-for-like EBITDA will expand in 2027 as capital expenditure needs decline and operating efficiencies improve. Investors have shown little support for the stock due to its high leverage, with Six Flags currently having a current ratio of just 0.42, indicating short-term obligations exceed liquid assets.

With a total debt of $5.16 billion against a market cap of $933 million, the company's leverage situation remains challenging. Stifel believes improvements in leverage could attract long-term investors back to the shares. The company reported a third-quarter 2026 revenue of $1.17 billion, meeting Wall Street's expectations, but posted a net loss of $3.59 per share, significantly below the anticipated earnings of $1.98 per share.

The loss was primarily due to a $688 million non-cash impairment charge, but the stock rose in premarket trading, suggesting investor indifference to the earnings miss.