Merlin share price: Entertainment company had strong year despite rollercoaster accident

Merlin share price: Entertainment company had strong year despite rollercoaster accident

Merlin Entertainment’s (LON:MERL) share price has had a strong 12 months despite the rollercoaster disaster last year, Numis has remarked.

The broker yesterday reiterated its ‘hold’ recommendation and target price of 400p on the blue-chip theme parks operator. Analyst Ivor Jones said in a note to clients: “Merlin’s share price has outperformed the market over the past year, despite the impact on profits and sentiment of the accident at Alton Towers in mid-2015. We believe this share price performance reflects the long-term investment attractions of the business in a turbulent market.” He added that Merlin’s global consumer exposure and growth potential had delivered material outperformance for investors in the past year and Numis saw no reason to chase the shares ahead of the company’s full-year results announcement on February 25.

Merlin is trying to boost visitor numbers to its Alton Towers theme park in the UK after an accident last year left four teenagers seriously injured and hit the company just before the peak summer trading season. The operator of the Sea Life centres and Legoland theme parks in Europe, North America and Asia has since put in place improved safety-measures at all its roller-coasters.
Merlin’s share price has gained 5.55 percent in the past year. As of 09:35 GMT today, the blue-chip group was trading 0.21 percent higher at 430.40p. Meanwhile, the FTSE 100 benchmark index had fallen 0.48 percent to 6,001.38 points.
As of 09:44 GMT, Thursday, 18 February, Merlin Entertainments share price is 431.35p.

By Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.