4 Best Stocks to Buy According to Billionaire James Dinan

2. Cedar Fair, LP (NYSE:FUN) 

York Capital Management’s Stake Value: $26,576,000

Percentage of York Capital Management’s 13F Portfolio: 8.63%

Number of Hedge Fund Holders: 12

Amusement and water parks operator Cedar Fair, LP’s (NYSE:FUN) stock saw a huge bull run starting from late 2009 up until mid-2017, during which it multiplied seven times. However, it cooled off in the next three years and plunged heavily when the world went into lockdown in March 2020. Though it has recovered significantly since then, it is yet to touch the 2017 highs.

Last month, Deutsche Bank analyst Chris Woronka penned a note to clients after he and his team visited two Cedar Fair, LP’s (NYSE:FUN) sites and met the company’s management. In his note, Mr. Woronka wrote:

“Net, we continue to view FUN and SEAS as being well positioned to benefit from a healthy consumer wallet for out-of-home leisure experiences and anticipate that momentum should continue for the balance of the year. We view both of these stocks as being attractively valued and note that both are now actively returning capital to investors. At SIX, as we mentioned in our 2Q takeaways note, we acknowledge a lack of conviction in the premiumization strategy’s ability to succeed on the scale it needs to, but continue to think risk/ reward in the stock skews to the upside from here.”

On September 9, analysts at Rosenblatt Securities reiterated their ‘Neutral’ rating on Cedar Fair, LP’s (NYSE:FUN) stock while upping their price target on it to $41 from $40, representing a potential downside of 8.1% from the stock’s last trading price.