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Wall Street tried Six Flags' virtual reality enhanced roller coaster and were blown away

Sam Ro
Managing Editor

There's nothing quite like that feeling you get in the pit of your stomach when a roller coaster slowly cranks you up a hill and then sends you straight down.

But what if you could enhance that experience with virtual reality?

The analysts at Oppenheimer recently visited a Six Flags (SIX) and tried that out. And they were sold. From Oppenheimer:

"SFOG introduced a Virtual Reality offering to its Dare Devil Dive roller coaster. Just ~10 days into its launch, we were impressed by its execution, thrill, cleanliness and speed. While we demo'ed a futuristic fighter game, the software can be reconfigured to include themes such as Superman vs. Luthor for its Superman ride or Santa's sled during Holiday in the Park.

"Returns on VR could be substantial. Cost is limited to mostly software development, as the headsets are easily sourced and paid in part by Samsung and Oculus (FB). In turn, VR transforms a relatively older ride into a new attraction, extends its useful life and delays the need for a brand-new, expensive ride."

Virtual reality is not a new offering at amusement parks.

But strapping roller coaster riders to virtual reality headsets is.

Instead of looking down at people waiting in amusement park lines, imagine jumping of the side off a building in Gotham City.

For amusement parks, it's certainly much cheaper to upload some new software rather than tear down and rebuild a new ride.

"We believe this low-cost retrofit revitalizes an older ride and extends its useful life; it also creates excitement and a unique marketing opportunity more commonly associated with a new ride," Oppenheimer's Ian Zaffino said.

Zaffino has an outperform rating on the stock. On Tuesday, he raised his price target to $65 from $58.

Shares are currently trading at around $58 per share.

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Sam Ro is managing editor at Yahoo Finance.

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