Turnaround Letter recommended SeaWorld Entertainment (SEAS) has undergone a remarkable turnaround since the Blackfish scandal in 2013, which sent its shares plummeting by as much as 66% from their $27 IPO price and as much as 75% from their high of about $39.
Operationally, despite some turnover in the executive suite, the company’s operations are on-track to generate very strong revenues and profits.
With the shares at our $35 price target (previously raised from the initial $27 target), the shares have fully recovered to their pre-Blackfish prices, are nearly at their post-IPO high, and discount most of the turnaround.
As such, we are moving SEAS shares to a SELL. Since our initial recommendation, SEAS shares have produced a 66% return.
We are moving shares of SeaWorld Entertainment (SEAS) to a SELL.
Disclosure Note: One or more employees of the Publisher own SEAS shares.