1、M IdeaMorgan Stanley&Co.LLCThomas YehEquity Analyst Thomas.Y +1 212 761-1740 Benjamin Swinburne,CFAEquity Analyst Benjamin.S +1 212 761-7527 Grace SongResearch Associate Grace.S +1 212 761-4931 Wen ZhangEquity Strategist Wen.Z +1 212 761-1732 Media&EntertainmentNorth AmericaIndustry ViewIn-LineMedia

2、&Entertainment|North AmericaUS Theme Parks:Near-Term Weather Clouds Long-Term Opportunity,Remain OW FUN2Q weather challenges fuel market skepticism about underlying consumer demand for regional parks.We lower estimates and PTs,but we remain OW FUN as merger benefits are still ahead and not priced in

3、 at 7x 27E EBITDA.We stay EW PRKS on a more limited growth outlook amid rising local competition.Whats Changed Six Flags Entertainment Corporation(FUN.N)FromToPrice Target$47.00$43.00United Parks&Resorts Inc(PRKS.N)Price Target$52.00$50.00Weather challenges in 2Q cloud underlying growth opportunity

4、for OW FUN:The YTD share underperformance for both OW FUN(down nearly 40%)and EW PRKS(down 20%)reflects the markets continued skepticism about the underlying growth potential for regional theme parks.Revised expectations for limited revenue growth in 25E(-1%at FUN,+1%at PRKS)add fuel to this debate,

5、as near-term weather-related headwinds pressure attendance in an otherwise broadly healthy consumer backdrop to date.Adverse weather conditions at the Six Flags footprint,in particular,during a critical May/June timeframe push out our expectations for accelerating EBITDA growth into 2026.We acknowle

6、dge that weather is a structural risk,but we remain constructive on FUNs ability to deliver merger benefits still to come,primarily through improving its core legacy Six Flags attendance,which has been a drag on the pro forma Morgan Stanley does and seeks to do business with companies covered in Mor