NEW YORK (TheStreet) -- Cedar Fair (FUN) shares are gaining 0.19% to $58.14 in early morning trading on Friday after Wedbush analysts initiated coverage with an "outperform" rating and price target of $69.
Wedbush analysts believe that investors are under-appreciating the size and reliability of the stock's distribution payout, as well as the growth potential of the distribution in the coming years, according to the report.
"Through a combination of distribution yield, distribution growth, and expanding valuation, we believe that FUN units represent a compelling total return story," the analysts said.
In the long term however, analysts said they expect the EBITDA growth to slow down due to incremental investments and leveraging of the top line towards margin expansion.
Headquartered in Sandusky, Ohio, Cedar Fair is the parent company of Knott's Berry Farm, Cedar Point and Canada's Wonderland. Recently, the company's president and CEO Matt Ouimet announced plans to install interactive dark rides at all 11 locations in the amusement park chain, under the banner of Amusement Dark, according to the Los Angeles Times.
TheStreet Ratings team rates CEDAR FAIR -LP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CEDAR FAIR -LP (FUN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."