Stock Markets
United Parks & Resorts maintains $71 target amid revenue growth
On Friday, B.Riley maintained a positive stance on United Parks & Resorts (NYSE:PRKS), reiterating a Buy rating and a price target of $71. The firm highlighted the company’s recent performance, noting an increase in revenue-based lease payments for its San Diego park. The August 2024 payment showed a 9.5% rise from August 2023, reaching $1.488 million, and a 14.1% increase from August 2019. These figures contribute to a year-to-date (YTD) growth of 2.9% over the previous year and 22.9% higher than the same period in 2019.
Despite a report of slightly lower attendance and total revenues for the June quarter due to challenging weather conditions, analysts believe that improvements in July and August, supported by more favorable weather, could reinforce the view that demand for regional theme parks remains strong. This is despite potential macroeconomic spending pressures.
The firm’s confidence in United Parks & Resorts is further supported by the expectation of a 3.4% year-over-year revenue increase for the third quarter of 2024. This projection takes into account the potential for pent-up demand following a slower start to the summer season. It is also noted that with more parks in operation during peak visitation times, the San Diego park’s influence on overall quarterly results will be less pronounced.
In addition to the revenue growth, United Parks & Resorts has been proactive with its capital management. The company has been purchasing shares under the $500 million repurchase plan authorized earlier in the year, with at least $345 million repurchased year-to-date. This move is seen as a strategic effort to capitalize on the recent pullback in PRKS shares.
The analyst’s outlook remains optimistic, focusing on the company’s ability to drive higher per capita spending and the potential to significantly increase AEBITDA in the coming years, assuming normalized weather and attendance patterns. The reiterated Buy rating and $71 price target reflect this positive expectation for United Parks & Resorts’ financial performance.
In other recent news, United Parks & Resorts has seen a series of significant developments. The company has announced the appointment of Bill Myers as the new Chief Accounting Officer, bringing with him extensive experience from various financial leadership roles.
In financial matters, United Parks & Resorts has expanded its credit facility from $390 million to $700 million, enhancing its financial flexibility. Q2 attendance saw a slight rise to about 6.2 million guests, with projected revenues for the quarter estimated to be between $495 million and $500 million and anticipated net income falling between $87 million and $95 million.
In the realm of analyst ratings, Goldman Sachs downgraded United Parks & Resorts from “Buy” to “Neutral”. However, Truist Securities and B.Riley raised their price targets on the company’s shares.
InvestingPro Insights
Recent data from InvestingPro provides additional context to United Parks & Resorts’ (NYSE:PRKS) financial position and market performance. The company’s market capitalization stands at $2.97 billion, with a price-to-earnings ratio of 13.4, indicating a potentially attractive valuation relative to earnings. This aligns with the analyst’s optimistic outlook and Buy rating.
InvestingPro Tips highlight that management has been aggressively buying back shares, which corroborates the article’s mention of the company’s $500 million repurchase plan. This strategy often signals management’s confidence in the company’s value and future prospects.
Additionally, PRKS has been profitable over the last twelve months, with a revenue of $1.73 billion and an impressive operating income margin of 29.79%. These figures support the analyst’s positive stance on the company’s financial performance and potential for AEBITDA growth.
It’s worth noting that InvestingPro offers 6 additional tips for PRKS, providing investors with a more comprehensive analysis of the company’s financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Israeli strikes kill dozens in Gaza over 48 hours, Palestinian officials say
By Nidal al-Mughrabi
CAIRO (Reuters) -Israeli military strikes across the Gaza Strip have killed at least 120 Palestinians over the last 48 hours and hit a hospital on the northern edge of the enclave, wounding medical staff and damaging equipment, Palestinian medics said on Saturday.
Among the dead were seven members of one family whose house was hit overnight in the Zeitoun suburb of Gaza City, the health officials said. The rest were killed in separate Israeli strikes in central and southern Gaza.
At the same time, Israeli forces deepened their incursion and bombardment of the northern edge of the enclave, their main offensive since early last month.
A spokesperson for the armed wing of Hamas said a female Israeli hostage in the group’s custody had been killed in a northern area under attack by Israeli forces.
“The life of another female prisoner who used to be with her remains in imminent danger,” spokesperson Abu Ubaida added, accusing the government of Israeli Prime Minister Benjamin Netanyahu of being to blame.
An Israeli military spokesperson said it was investigating the Hamas report.
“At this point, we are unable to confirm or deny it,” the spokesperson said. “Hamas continues to engage in psychological terrorism and act in a cruel manner.”
A group representing hostages’ families did not immediately reply to a request for comment.
DAMAGE, INJURIES AT HOSPITAL
Israel’s military says its operations in northern Gaza aim to prevent Hamas fighters from carrying out attacks and regrouping. Local residents say they fear the goal is to permanently depopulate a strip of territory as a buffer zone, something Israel denies.
At Kamal Adwan Hospital, one of three medical facilities on the northern edge of Gaza that is barely operational, director Hussam Abu Safiya said the ongoing Israeli bombardment in the area appeared aimed at forcing hospital staff to evacuate – something they have refused to do since the incursion began.
“Yesterday (Friday), from the afternoon until midnight, the bombardment directly targeted the entrance to the emergency and reception area several times,” he said in a statement, adding that 12 staff members including doctors and nurses were injured.
The strike also caused significant damage that disrupted the electrical generator, oxygen supply network and water supply, he added.
Asked to comment on Abu Safiya’s statement, the Israeli military said that following an initial review it was “not aware of a strike in the area of the Kamal Adwan Hospital”, adding that it does everything possible to avoid harming civilians.
Israel says Hamas uses hospitals and civilians as human shields, and has made public videos and photos to support that claim. Hamas rejects the allegations and says it does not use the civilian population or facilities for military purposes.
Israel’s 13-month campaign in Gaza has killed more than 44,000 people and displaced nearly all the enclave’s population at least once, according to Gaza officials.
The war was launched in response to an attack by Hamas-led fighters who killed 1,200 people and captured more than 250 hostages in Israel on Oct. 7, 2023, Israel has said.
Months of attempts to negotiate a ceasefire have yielded scant progress and negotiations are now on hold, with mediator Qatar having suspended its efforts until the sides are prepared to make concessions.
Hamas wants a deal that ends the conflict, and leads to the release of Israeli and foreign hostages held captive in Gaza as well as Palestinians jailed by Israel, while Netanyahu has said the war can end only once Hamas is eradicated.
Stock Markets
Trump expected to pick Brooke Rollins to be agriculture secretary, WSJ reports
WASHINGTON (Reuters) -U.S. President-elect Donald Trump is expected to pick Brooke Rollins (NYSE:), president of the America First Policy Institute, to be agriculture secretary, the Wall Street Journal reported on Saturday.
If confirmed, Rollins would lead a 100,000-person agency with offices in every county in the country, whose remit includes farm and nutrition programs, forestry, home and farm lending, food safety, rural development, agricultural research, trade and more. It had a budget of $437.2 billion in 2024.
Trump’s transition team did not immediately respond to a request for comment.
The nominee’s agenda would carry implications for American diets and wallets, both urban and rural. Department of Agriculture officials and staff negotiate trade deals, guide dietary recommendations, inspect meat, fight wildfires and support rural broadband, among other activities.
The America First Policy Institute is a right-leaning think tank whose personnel have worked closely with Trump’s campaign to help shape policy for his incoming administration. She chaired the Domestic Policy Council during Trump’s first term.
If confirmed, Rollins would advise the administration on how and whether to implement clean fuel tax credits for biofuels at a time when the sector is hoping to grow through the production of sustainable aviation fuel.
The nominee would also guide next year’s renegotiation of the U.S.-Mexico-Canada trade deal, in the shadow of disputes over Mexico’s attempt to bar imports of genetically modified corn and Canada’s dairy import quotas.
Trump has said he again plans to institute sweeping tariffs that are likely to affect the farm sector.
He was considering offering the role to former U.S. Senator Kelly Loeffler, a staunch ally whom he chose to co-chair his inaugural committee, CNN reported on Friday.
Stock Markets
ICC warrants are binding, EU cannot pick and choose, EU’s Borrell says
By Michele Kambas
NICOSIA (Reuters) – European Union governments cannot pick and choose whether to execute arrest warrants issued by the International Criminal Court against two Israeli leaders and a Hamas commander, the EU’s foreign policy chief said on Saturday.
The ICC issued the warrants on Thursday against Israeli Prime Minister Benjamin Netanyahu, his former defence minister Yoav Gallant and Hamas leader Ibrahim Al-Masri, for alleged crimes against humanity.
All EU member states are signatories to the ICC’s founding treaty, called the Rome Statute.
Several EU states have said they will meet their commitments under the statute if needed, but Hungarian Prime Minister Viktor Orban has invited Netanyahu to visit his country, assuring him he would face no risks if he did so.
“The states that signed the Rome convention are obliged to implement the decision of the court. It’s not optional,” Josep Borrell, the EU’s top diplomat, said during a visit to Cyprus for a workshop of Israeli and Palestinian peace activists.
Those same obligations were also binding on countries aspiring to join the EU, he said.
“It would be very funny that the newcomers have an obligation that current members don’t fulfil,” he told Reuters.
The United States rejected the ICC’s decision and Israel said the ICC move was antisemitic.
“Every time someone disagrees with the policy of one Israeli government – (they are) being accused of antisemitism,” said Borrell, whose term as EU foreign policy chief ends this month.
“I have the right to criticise the decisions of the Israeli government, be it Mr Netanyahu or someone else, without being accused of antisemitism. This is not acceptable. That’s enough.”
Israel’s 13-month campaign in Gaza has killed about 44,000 Palestinians and displaced nearly all the enclave’s population while creating a humanitarian crisis, Gaza officials say.
Israel began its offensive after the Hamas-led attack on Oct. 7, 2023, which killed 1,200 people in southern Israel, with more than 250 others taken hostage, Israel has said.
In their decision, the ICC judges said there were reasonable grounds to believe Netanyahu and Gallant were criminally responsible for acts including murder, persecution and starvation as a weapon of war as part of a “widespread and systematic attack against the civilian population of Gaza”.
The warrant for Masri lists charges of mass killings during the Oct. 7, 2023, attacks. Israel says it has killed Masri.
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