PRKS Stock Forecast & Price Target

United Parks & Resorts Inc. has demonstrated a favorable outlook for 2025, with management reporting positive trends in bookings, particularly in international sales and group bookings, leading to an increased revenue and EBITDA forecast of $1.787 billion and $721 million, respectively. The company’s strategic focus on operational efficiency, potential annual EBITDA of $1-$1.2 billion, and a disciplined approach to capital expenditures, combined with projected savings of $125 million from both 2024 and targeted efficiencies in 2025, further strengthens its financial position. Additionally, an expectation of normalized weather conditions and revenue growth from new attractions enhances the company's capacity for continued EBITDA and free cash flow growth while maintaining a robust balance sheet.

United Parks & Resorts reported revenues of $384.4 million, slightly exceeding expectations but reflecting a 1.2% year-over-year decline, alongside a decrease in guest attendance by 79,000 to 4.9 million. Despite a modest increase in per capita spending, the company's profitability metrics remain weak, suggesting inefficiencies in converting investments into earnings. Furthermore, external factors such as currency fluctuations, adverse weather conditions, and macroeconomic trends present significant risks to the company's future performance and brand reputation.