Bear Stearns Upgrades Six Flags

Analyst Glen Reid says given the offer by Daniel Snyder and an improved summer season, he sees less downside risk

Red Skins owner Daniel Snyder plans to take control of Six Flags (PKS ). Bear Stearns upgraded the stock.

Analyst Glen Reid says Daniel Snyder's Red Zone LLC offered to tender for up to 34.9% of Six Flags shares for $6.50 each, including nearly 12% it already owns. Given the offer, Snyder's persistence, and improved summer season, Reid sees less downside risk and upgrades to peer perform from underperform.

Should Snyder prove successful in his battle for control, Reid thinks he will have a major turnaround challenge before him. The analyst believes he could prove himself more able than current management, but notes Six Flags is saddled with a tremendous amount of debt and situated in a relatively unpromising industry.

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