United Parks & Resorts' (PRKS) traffic figures has shown improvement in May, but June numbers need to improve substantially for the company to show growth for the quarter, UBS said in a Friday note.

UBS data shows that the company is seeing slightly improving trends for May month over month, aided by strong traffic over the Memorial Day weekend in Florida. However, wait times, which the brokerage uses at target locations to create a proxy for foot traffic, show that Q2 remains below Q1's rate of growth.

April attendance is down year over year, with around 2.5 percentage points of the decline due to visits related to Easter being recorded for Q1, as the holiday dell in a different period last year, according to the note.

Potential sources of upside include, paid pass sales being up in Q1, advanced booking revenue for Discovery Cove and group business being above prior-year levels, strong in-park spending for the quarter, and sponsorship revenue in single-digit millions, the note said.

UBS maintained the company's stock rating at neutral and adjusted the price target to $45 from $37.

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