SeaWorld’s stock surges after KeyBanc upgrades, sets target at 4 1/2-year high

SeaWorld’s stock surges after KeyBanc upgrades, sets target at 4 1/2-year high

Shares of SeaWorld Entertainment Inc. SEAS, +0.93% surged 3.4% in premarket trade Thursday, after KeyBanc Capital analyst Brett Andress upgraded the theme park operator, saying the recent selloff had created an “attractive entry point.” Andress raised his rating to overweight, after being at sector weight since August 2017, and introduced a stock price target of $35, which is 34% above Wednesday’s closing price and a level not seen during regular-session hours since March 2014. He said he has a “higher degree of confidence” that SeaWorld’s turnaround is sustainable, supported by a structural change in public perception and as monthly datapoints remain positive. “We see further upside to shares in the coming quarters on continued top and bottom-line improvement, with our confidence in [SeaWorld’s] turnaround bolstered by additional evidence of both a brand and business in recovery mode,” Andress wrote in a note to clients. SeaWorld is scheduled to report third-quarter results before the Nov. 5 open. The stock had tumbled 17% in October, compared with the S&P 500’s SPX, +1.09% 6.9% decline.

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