In this pitch deck, analysts Mikael Bamberg, Jacob Blomberg Persson, and Tom Henriksson present an in-depth analysis of United Parks and Resorts, a U.S. based operator of 12 regional theme parks under brands like SeaWorld and Busch Gardens. While the market prices PRKS as a cyclical consumer stock, the company’s earnings resilience, recurring visitor base, and under-appreciated asset value paint a different picture. With unutilized land assets and credible buyout potential, PRKS offers multiple paths to rerating. The analysts assign a target price of $78, implying 66% upside from current levels.
Investment Thesis
● Overlooked resilience: With 40% of visits from season pass holders and a predominantly local customer base, PRKS offers dependable cash flow even during downturns. Despite consumer sentiment headwinds, EBITDA has remained stable through recessions, underpinned by high-margin in-park spend and affordable pricing relative to destination resorts
● $1.4bn in overlooked land value: PRKS owns 400 acres of undeveloped land adjacent to its parks. Management now openly signals plans to monetize these assets, with hotel development as the most likely path. In a base case, this adds ~28% to current enterprise value, with targeted ROIC above 20%
● Buyout setup with credible path: Hill Path Capital owns 49.5% of PRKS and continues to consolidate control. A strategic take-private at 11x EBITDA, in line with precedent deals, would imply a 47% premium and offers downside protection if public market valuation fails to normalize.