UPDATE: Credit Suisse Initiates Coverage On SeaWorld Entertainment As Sentiment Is Washing Out

In a report published Monday, Credit Suisse analyst Joel Simkins initiated coverage on SeaWorld Entertainment (NYSE: SEAS) with an Outperform rating and $23.00 price target.

In the report, Credit Suisse noted, “Following its April 2013 IPO, the stock has significantly underperformed (-31% vs. +22% gain in the Russell 2000) owing to noise around Blackfish, disappointing results, and transition challenges from private to public ownership. This culminated on 8/13 when the company reported a difficult 2Q14, leading to significant sell-side capitulation. We are positive on the theme park sector owing to no new supply, opportunities for pricing, and potential for better attendance/ancillary spend as the economy recovers. While near-term catalysts may be limited, either this management team or a new regime capable of consistent execution may turn it around.”

SeaWorld Entertainment closed on Friday at $18.66.