Cedar Fair - Steady Growth, Positioned For Significant Upside In The Long-term

(RTTNews) - With 850 plus rides and 120 plus roller coasters, Cedar Fair, L.P. (FUN) entertained more than 24 million visitors last year. Revenues have increased in 19 out of last 20 years, backing the company's claims of a recession-resistant business model. The company expects to meet its adjusted EBITDA goal of $500 million before 2018, earlier than projected.

FUN is a steady growth stock, and at current levels more attractively valued than its peer Six Flags Entertainment Corp. (SIX). We believe the stock has the potential for significant upside in the long-term, given the high entry-barriers to the business and Cedar Fair's regional focus, and Capex management that has contributed to its resilience during downturns.

The company's 2016 distribution of $3.3 per unit, represents a whopping yield of 5.6% and it sees future distribution growth at least in line with business growth.

The theme-park owner has partnered with Electronic Arts to bring giant video games to its Carowinds theme park in Charlotte.

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