Balanced Investing
Growth at reasonable price, mutual fund analyst

Cedar Fair: Strong Operating Performance Will Trigger Re-Rating Of Multiples

Because of the 2008-09 recession, amusement park industry's revenues have plunged significantly. However, the industry started to recover during fiscal years 2010 and 2011 and nominal growth in the revenues of the industry has been recorded. In my opinion, Cedar Fair L.P (NYSE:FUN) posted quite decent results despite the economic turmoil. The company not only outperformed its peers on EBITDA margins in the past but also expects to continue outperforming its peers in the future. The company is expected to witness reasonable growth and its future prospects are quite bright. According to my valuation, using the EV/EBITDA multiple, the stock price is expected to reach $60.28 in fiscal year 2014 which gives a total return of 30.05 percent

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