Alton Towers parent company Merlin Entertainments floated on the stock market last November at 315p.
Shares of the funtime attractions giant have been sold by private equity firms, but experts recommend the stock for purchase after its shares have risen by almost 8 percent to 3391/4p.
Brokers are optimistic that the price could rise to at least 400p over the next year, since the firm’s underlying sales rose by 12 percent in the first four months of 2014.
Merlin Entertainments is the owner of a number of attractions and amusement parks around the world, including America, China and Australia. These include Madame Tussauds, Alton Towers, and Legoland in the UK; as well as Legoland parks in Chicago and Tokyo and several Sea Life centres.
It acquired Alton Towers when it purchased the park’s previous owner the Tussauds Group in 1990. Tussauds is the second largest leisure group in the world after Disney.
Although Alton Towers is owned by tycoon Nick Laslau, it continues to operate under Merlin Entertainments via a 35-year lease.
Brokers have said they expect the firm’s profits to continue to rise from £186 million in 2013 to about £230 million this year, with suggestions this could even rise to £255 million in 2015.
Merlin Entertainments is expanding, having just opened its 100th Sea Life Centre this year and building new accommodation sites in many of its parks. This includes Alton Towers, which has just gained planning permission to build the Enchanted Village, a new fairytale-themed site that will hold 100 lodges and treehouses. The new site is expected to open in 2015.
Investors that bought in November have been advised to hold by thisismoney.co.uk. Merlin is forecast to have a maiden dividend of 5.85p in 2014, and Midas predicts that the growing trend in international travel will have a profoundly positive effect on the firm’s position.