Six Flags Entertainment (FUN) has "ambitious targets" for 2025, indicating accelerated attendance growth, UBS analysts said in a note to clients, but added that "the market is not giving the stock credit for even half of those targets."

The firm said that the lack of credit is in part due to "macro uncertainty" and "execution concerns" related to recovering visitors lost since 2019 when the COVID-19 pandemic hit.

UBS noted that the amusement park operator said it expects to see 58 million visitors by 2028, "which would mean an additional 10 million of incremental visitors." UBS said this implies a compound annual growth rate of approximately 6%, which is double the approximately 3% historical growth rate for the combined portfolio.

UBS has a buy rating and a price target of $49 on Six Flag's stock.

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