The firm said it lowered its rating on the marine mammal amusement park as SeaWorld has low visibility as it cut its guidance.
On Wednesday, SeaWorld's stock declined as a result of disappointing second quarter earnings and after issuing full year sales guidance below analysts' expectations.
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SeaWorld was also downgraded at Bank of America/Merrill Lynch (BAC), to “neutral” from “buy,” the firm cited the earnings miss and weak guidance as its reason for the ratings downgrade.
Shares of SeaWorld are down -1.22% to $18.67 in pre-market trading today.
Separately, TheStreet Ratings team rates SEAWORLD ENTERTAINMENT INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SEAWORLD ENTERTAINMENT INC (SEAS) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow."